Data Concerning Marchman Corporation's Single Product Appear Below: the Company

question 171

Multiple Choice

Data concerning Marchman Corporation's single product appear below: The company is currently selling 4,000 units per month. Fixed expenses are $166,000 per month. Consider each of the following questions independently. This question is to be considered independently of all other questions relating to Marchman Corporation. Refer to the original data when answering this question.
The marketing manager believes that a $6,000 increase in the monthly advertising budget would result in a 130 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

• A)decrease of $240
• B)decrease of $6,000
• C)increase of $240
• D)increase of $6,240

---

Definitions:

E-Zines

Electronic magazines published on the internet that cater to a variety of interests and topics.

Open-Design Offices

A modern office layout that eliminates most enclosed spaces like cubicles and private rooms to encourage collaboration, communication, and flexibility among employees.

Informal Communication

The exchange of information and messages that occurs outside of the formal organizational structures and channels.

Knowledge Sharing

The exchange of skills, information, or understanding among individuals, teams, or organizations, which can lead to innovation and improved performance.