Answer the Following Questions Using the Information Below

question 129

Multiple Choice

Answer the following questions using the information below:
Silicon Technologies, currently sells 17" monitors for $270. It has costs of $210. A competitor is bringing a new 17" monitor to market that will sell for $230. Management believes it must lower the price to $230 to compete in the market for 17" monitors. Silicon believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. Silicon's sales are currently 5,000 monitors per year.
-What is the change in operating income if marketing manager is correct and only the sales price is changed?

• A) $200,000
• B) $190,000
• C) $(190,000)
• D) $(200,000)

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Definitions:

Property Qualifications

Historical voting or office-holding requirements that individuals own property of a certain value to participate in the political process.

Holding Office

The term refers to the duration or period in which an individual serves in a particular position or office.

Landed Gentry

Refers to the class of wealthy landowners in Britain who held significant social status but did not possess titles of nobility.

Republicanism

A political ideology centered around the concept of a republic, where the government is a public matter and the public matters are decided by elected representatives of the population.