Dybala Corporation Produces and Sells a Single Product

question 24

Multiple Choice

Dybala Corporation produces and sells a single product. Data concerning that product appear below: The company is currently selling 5,000 units per month. Fixed expenses are $173,000 per month. The marketing manager believes that a $6,000 increase in the monthly advertising budget would result in a 170 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

• A)increase of $1,480
• B)decrease of $6,000
• C)increase of $7,480
• D)decrease of $1,480

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Definitions:

Reconstruction

The period following the Civil War (1865-1877) during which the United States attempted to reintegrate the Southern states into the Union and address the social, political, and economic issues arising from emancipation.

Agribusiness

The industry involved in the production, processing, and distribution of agricultural products, often on a large scale.

Impeachment

A formal process in which an official is accused of unlawful activity, potentially leading to the removal from office.

President Johnson

Likely refers to Lyndon B. Johnson, the 36th President of the United States, known for his domestic policies, including the Great Society programs.