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

question 187

Multiple Choice

Data concerning Moscowitz Corporation's single product appear below: Fixed expenses are $375,000 per month.The company is currently selling 8,000 units per month.The marketing manager would like to cut the selling price by $15 and increase the advertising budget by $23,000 per month.The marketing manager predicts that these two changes would increase monthly sales by 3,100 units.What should be the overall effect on the company's monthly net operating income of this change?

• A)Decrease of $128,900
• B)Increase of $426,500
• C)Increase of $8,900
• D)Increase of $128,900

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Definitions:

Warehouse Rent

Warehouse rent refers to the cost associated with leasing a space used for storing goods in a warehouse.

Acquisition

The act of purchasing or otherwise obtaining control of something, often referring to business transactions where one company buys another.

Maintenance

The process of preserving a condition or situation, such as keeping machinery in operational order or sustaining a level of service.

Customer-Oriented

Being customer-oriented means prioritizing and addressing the needs, preferences, and satisfaction of customers in business practices and product development.