This Question Is to Be Considered Independently of All Other

question 66

Multiple Choice

This question is to be considered independently of all other questions relating to Boenisch 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 $2,000
• B)increase of $26,000
• C)increase of $2,000
• D)decrease of $26,000

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Definitions:

Table

An arrangement of data in rows and columns that organizes and displays information clearly and systematically.

Proportion

The relationship or ratio between parts of a whole, often referring to balance and symmetry in design or composition.

Hurricanes

Powerful tropical storms characterized by strong winds, heavy rain, and can lead to significant destruction, often occurring in the Atlantic Basin.

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Refers to the states in the United States that border the Gulf of Mexico, including Texas, Louisiana, Mississippi, Alabama, and Florida.