Data Concerning Sotero Corporation's Single Product Appear Below: the Company

question 171

Multiple Choice

Data concerning Sotero Corporation's single product appear below: The company is currently selling 5,000 units per month. Fixed expenses are $319,000 per month. Consider each of the following questions independently.
-This question is to be considered independently of all other questions relating to Sotero Corporation. Refer to the original data when answering this question.
The marketing manager would like to cut the selling price by $7 and increase the advertising budget by $20,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 500 units. What should be the overall effect on the company's monthly net operating income of this change?

• A) increase of $46,500
• B) decrease of $18,500
• C) decrease of $16,500
• D) increase of $18,500

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Definitions:

Abandoning Patients

The unethical and professional misconduct of healthcare providers failing to continue necessary medical care for a patient.

Hysterectomy Surgery

A surgical procedure to remove a woman's uterus, may also involve removal of the cervix, ovaries, fallopian tubes, and other surrounding structures.

Preoperative Patient

A person who is undergoing evaluation, preparation, or procedures prior to surgery.

Pregnant

A state of carrying a developing fetus within the female body.