Data Concerning Wythe Corporation's Single Product Appear Below: Fixed

question 140

Multiple Choice

Data concerning Wythe Corporation's single product appear below: Fixed expenses are $106, 000 per month.The company is currently selling 2, 000 units per month.The marketing manager would like to cut the selling price by $15 and increase the advertising budget by $5, 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?

• A)increase of $31, 000
• B)decrease of $31, 000
• C)increase of $103, 000
• D)increase of $1, 000

---

Definitions:

Modeling

A psychological concept that refers to the process of learning behaviors, attitudes, and emotional reactions through observing others.

Bandura's Theory

Albert Bandura's social learning theory, which proposes that people learn new behaviors through observational learning, modeling, and imitating others.

Computer Competence

The ability to use computers effectively and efficiently, including basic knowledge of hardware, software, and internet operations.

Style of Life

A concept in Adlerian psychology referring to the unique way an individual navigates life's challenges and structures their personal life, shaped by early family experiences.