Joly Corporation Produces and Sells a Single Product

question 97

Multiple Choice

Joly Corporation produces and sells a single product.Data concerning that product appear below: Fixed expenses are $511,000 per month.The company is currently selling 5,000 units per month.The marketing manager would like to cut the selling price by $16 and increase the advertising budget by $33,000 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)decrease of $59,800
• B)increase of $59,800
• C)increase of $130,200
• D)decrease of $20,200

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Definitions:

Overly Permeable Boundaries

This term typically refers to a situation where an individual or system has boundaries that are too loose, allowing for unhealthy or unwanted intrusions.

Dysfunctional Mimesis

Involves the problematic imitation or reproduction of behaviors or attitudes that are unhealthy or unproductive, often in a social or interpersonal context.

Emotional Reactivity

The tendency of an individual to experience intense emotional responses to external stimuli, often leading to heightened stress or interpersonal conflict.

Salvador Minuchin

A renowned Argentinian psychiatrist and psychotherapist, notable for his work in developing family therapy and his innovative approach to structural family therapy.