Bohlen Corporation Produces and Sells a Single Product

question 124

Multiple Choice

Bohlen Corporation produces and sells a single product. Data concerning that product appear below: Fixed expenses are $716,000 per month. The company is currently selling 6,000 units per month. Consider each of the following questions independently. This question is to be considered independently of all other questions relating to Bohlen Corporation. Refer to the original data when answering this question.
The marketing manager would like to cut the selling price by $17 and increase the advertising budget by $42,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 1,000 units. What should be the overall effect on the company's monthly net operating income of this change?

• A)increase of $85,000
• B)increase of $121,000
• C)decrease of $85,000
• D)decrease of $17,000

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Definitions:

Y Chromosome

The sex chromosome typically found in male mammals, which carries genes responsible for the development of male characteristics.

Chromosomes

Thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of DNA.

Autosome

Any chromosome that is not a sex chromosome, involved in determining the genetic traits of an organism except for the sex.

Allele

One of two or more versions of a gene that determine variations in a hereditary characteristic.