In 2019, Master Computer Expects to Sell 100,000 Computers for an Average

question 105

Multiple Choice

In 2019, Master Computer expects to sell 100,000 computers for an average price of $1000.Expected production costs are $600 per unit.In 2020, volume is expected to increase by 10%, while inflation will increase both the sales price and the cost per unit by 3%.In nominal dollars, expected gross profit for 2020 is [blank].

• A)$40 million
• B)$45.32 million
• C)$48.20 million
• D)$50 million

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Definitions:

Affective Forecasting

The ability to predict one’s emotional reactions to future events

Psychologists

professionals who study the human mind and behavior, offering insights and interventions for mental and emotional well-being.

Moods

Persistent emotional states that are less specific than emotions and not necessarily linked to a particular stimulus.

Emotions

Complex psychological states that involve three distinct components: a subjective experience, a physiological response, and a behavioral or expressive response.