Robledo Corporation Produces and Sells a Single Product

question 74

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. The marketing manager would like to cut the selling price by $6 and increase the advertising budget by $46,000 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)Increase of $13,200
• B)Increase of $29,200
• C)Decrease of $13,200
• D)Decrease of $40,800

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Definitions:

Rhinovirus

A genus of viruses that is a predominant cause of the common cold, characterized by symptoms like sore throat, runny nose, and cough.

Infectious Disease

Diseases caused by organisms such as bacteria, viruses, fungi, or parasites, which can be spread, directly or indirectly, from one individual to another.

Sputum Culture

A lab test performed on phlegm (sputum) to identify bacteria or fungi causing respiratory infections or diseases.

Bacillus

A genus of rod-shaped, Gram-positive, spore-forming bacteria found in various environments, some species of which are pathogenic to humans.