Robledo Corporation Produces and Sells a Single Product

question 173

Multiple Choice

Robledo Corporation produces and sells a single product. Data concerning that product appear below: Fixed expenses are $625,000 per month. The company is currently selling 9,000 units per month. Consider each of the following questions independently.
-This question is to be considered independently of all other questions relating to Robledo Corporation.Refer to the original data when answering this question. Management is considering using a new component that would increase the unit variable cost by $3.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 $30,800
• B)Decrease of $3,800
• C)Increase of $30,800
• D)Increase of $3,800

Recognize the importance of creativity and innovation in organizational success.

Understand the role of intrinsic and extrinsic motivation in creativity and innovation.

Identify strategies to increase innovation within an organization.

Recognize the challenges and risks associated with innovation.

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Definitions:

Medium of Exchange

An instrument used to facilitate the sale, purchase, or trade of goods between parties, commonly accepted in the form of currency.