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Grable Corporation Produces and Sells a Single Product

question 186

Essay

Grable Corporation produces and sells a single product. Data concerning that product appear below: Grable Corporation produces and sells a single product. Data concerning that product appear below:   Fixed expenses are $628,000 per month. The company is currently selling 5,000 units per month. Required: The marketing manager would like to cut the selling price by $18 and increase the advertising budget by $45,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 800 units. What should be the overall effect on the company's monthly net operating income of this change? Show your work! Fixed expenses are $628,000 per month. The company is currently selling 5,000 units per month.
Required:
The marketing manager would like to cut the selling price by $18 and increase the advertising budget by $45,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 800 units. What should be the overall effect on the company's monthly net operating income of this change? Show your work!


Definitions:

Impact Evaluation

Assessing the changes that can be attributed to a particular intervention, project, or program, focusing on outcomes that are the direct result of the intervention.

Formative Evaluation

An evaluative process used during the development of a new program or product to improve its design based on feedback.

Presentations

This term refers to the act of showing and explaining the content of a topic to an audience, often using visual aids.

Word "I"

The use of the first-person singular pronoun in communication, indicating self-reference by the speaker.

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