This Question Is to Be Considered Independently of All Other

question 71

Multiple Choice

This question is to be considered independently of all other questions relating to Laro Corporation. Refer to the original data when answering this question. Management is considering using a new component that would increase the unit variable cost by $7. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 500 units. What should be the overall effect on the company's monthly net operating income of this change?

• A)increase of $1,000
• B)decrease of $1,000
• C)increase of $34,000
• D)decrease of $34,000

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Definitions:

Social Network Strategy

Plans or methods employed to navigate or utilize social networking platforms for achieving specific goals.

Positivity Strategy

An approach in interpersonal communication that focuses on positive interactions to build and maintain relationships.

Assurance Strategy

A communication approach designed to alleviate doubts and build confidence in a relationship or negotiation.

Initiation Norms

Socially established rules that dictate how and when a new member is introduced or integrated into a group or society.