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

question 45

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.
The marketing manager believes that a $6, 000 increase in the monthly advertising budget would result in a 130 unit increase in monthly sales.What should be the overall effect on the company's monthly net operating income of this change?

• A)decrease of $240
• B)decrease of $6, 000
• C)increase of $240
• D)increase of $6, 240

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Definitions:

Projective Tests

Psychological tests designed to let a person respond to ambiguous stimuli, revealing hidden emotions and internal conflicts.

Assessment Theory

A branch of education focused on the principles and methods used to evaluate the performance, ability, or potential of individuals.

Personality Assessment

The measurement and evaluation of psychological traits, behaviors, and attitudes to understand an individual's personality.

Projective Test

A psychological assessment tool in which participants interpret ambiguous stimuli, revealing hidden emotions and internal conflicts.