Use the Information Below to Answer the Following Question(s)

question 199

Multiple Choice

Use the information below to answer the following question(s) :
Venus Corporation provided the following information regarding its single product:

The regular selling price for the product is $75. The annual quantity of units produced and sold is 20,000 units (the costs above relate to the 20,000 units production level) . There was no beginning inventory.
-What would be the effect on Venus Corporation's operating income of accepting a special order for 2,000 units at a sale price of $45 per product assuming additional fixed manufacturing overhead costs of $7,000 are incurred? The company has excess capacity and regular sales will not be affected by this special order.

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Definitions:

Hierarchy of Effects

A model that outlines the sequential steps consumers typically go through, from awareness to knowledge, liking, preference, conviction, and finally purchase.

Stages

The distinct phases or steps within a process or life cycle.

Direct Marketing

A type of advertising strategy that involves direct communication with consumers through various channels, bypassing intermediaries.

Promotional Mix

The combination of marketing communication tools a company uses to pursue its marketing objectives, such as advertising, sales promotion, public relations, personal selling, and direct marketing.