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

question 165

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.
Management is considering using a new component that would increase the unit variable cost by $2.Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 200 units.What should be the overall effect on the company's monthly net operating income of this change?

• A)decrease of $9, 200
• B)increase of $1, 200
• C)decrease of $1, 200
• D)increase of $9, 200

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Definitions:

Job Incumbents

Individuals currently holding a specific job position within an organization.

Needs Analysis

The process of identifying and evaluating the needs of a team or organization to determine the necessary actions or resources.

Performance Gaps

The difference between actual performance and the desired or expected performance in an individual or organization.

Training And Development

The field focused on enhancing the skills, knowledge, and competencies of employees through designed learning experiences.