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

question 157

Multiple Choice

Data concerning Damberger Corporation's single product appear below: The company is currently selling 5,000 units per month.Fixed expenses are $243,000 per month.The marketing manager believes that an $11,000 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales.What should be the overall effect on the company's monthly net operating income of this change?

• A)increase of $200
• B)decrease of $200
• C)increase of $10,800
• D)decrease of $11,000

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Definitions:

Sabotage

Deliberate actions aimed at damaging, disrupting, or undermining the operations of an organization or system.

Preventive Maintenance

Regular and systematic inspection, cleaning, and repair of equipment and facilities to prevent sudden failure and ensure operational efficiency.

Continuous Improvement

An ongoing effort to improve products, services, or processes through incremental and breakthrough improvements.

On-the-job Change

Alterations to work processes, responsibilities, or environments that occur in the course of one's employment.