Refer to the Scenario Below to Answer the Following Questions

question 70

Multiple Choice

Refer to the scenario below to answer the following questions.
Breakeven Analysis at MRI (Scenario)
Mike has just been hired as a sales manager at Mobile Research Inc. (MRI) , makers of the popular Blueberry wireless phone. At his first management briefing, Mike is informed that the company is losing money, despite the immense popularity of the Blueberry phone. He learns that the company is facing intense competition from its main rival, Mandarin Communications, makers of the M-Phone. The M-Phone has the same popular features as the Blueberry and sells for $40 less. When Mike asked about the cost structure for the Blueberry he was informed that the selling price is $200, variable costs are $120, and total fixed costs are $800,000 per month.
-MRI decided to reduce their selling price and match the M-Phone at $160. The next month they sold 32,500 Blueberry phones and earned a profit of __________.

• A) $100,000
• B) $200,000
• C) $300,000
• D) $400,000
• E) $500,000

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Definitions:

Working Memory

A cognitive system responsible for temporarily holding information available for processing, important for reasoning and the guidance of decision-making and behavior.

Phonological Loop

A component of working memory model that is responsible for the temporary storage and manipulation of verbal and auditory information.

Rehearsal

A cognitive process of repetitively practicing or reviewing information to transfer it into long-term memory.

Short-Term Memory

A type of memory that holds a small amount of information for a brief period, typically around 20 seconds.