WSR Inc WSR Inc

question 109

Multiple Choice

WSR Inc. WSR Inc. sells a variety of drink and food products including potato chips and sodas. The segmented income statements for these two products are as follows:
WSR's management is considering a special advertising campaign that will run during a major sporting event. The advertising campaign is expected to cost $30,000 and only one product can be featured. In-house marketing studies show that the campaign could increase sales of the soda division by $200,000 or increase sales of the chips division by $275,000.
Refer to the WSR Inc. information above. What will be the overall net effect on the company's total profits if the advertising focuses on sodas?

• A) Increase of $170,000
• B) Increase of $150,000
• C) Increase of $120,000
• D) Increase of $200,000

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Definitions:

Processor

An electronic circuit that executes computer programs, essentially the brain of the computer and rephrasing the definition of a CPU.

Installed

Refers to software or applications that have been set up and are ready for use on a computer or device.

Intel

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Turion

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