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

question 17

Multiple Choice

Data concerning Bunck Corporation's single product appear below: Fixed expenses are $202,000 per month.The company is currently selling 2,000 units per month.Management is considering using a new component that would increase the unit variable cost by $18.Since the new component would increase the features of the company's product,the marketing manager predicts that monthly sales would increase by 400 units.What should be the overall effect on the company's monthly net operating income of this change?

• A)decrease of $47,200
• B)decrease of $11,200
• C)increase of $47,200
• D)increase of $11,200

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Definitions:

Fulfillment Centers

Large warehouses that process and ship orders for goods, playing a critical role in e-commerce and supply chain logistics.

Channel Captain

The dominant leader or company that exercises control over the coordination of all participants in a supply chain.

Intermediaries

Businesses or individuals that act as a link in the distribution process between producers and consumers, such as wholesalers or retailers.

Functions

Specific activities or tasks performed by individuals, systems, or machines within an organization to achieve certain objectives.