Riven Corporation Has a Single Product Whose Selling Price Is

question 191

Multiple Choice

Riven Corporation has a single product whose selling price is $10. At an expected sales level of $1,000,000, the company's variable expenses are $600,000 and its fixed expenses are $300,000. The marketing manager has recommended that the selling price be increased by 20%, with an expected decrease of only 10% in unit sales. What would be the company's net operating income if the marketing manager's recommendation is adopted?

• A) $132,000
• B) $290,000
• C) $180,000
• D) $240,000

---

Definitions:

Downtown Washington

The central business district and a prominent cultural area in Washington, D.C., known for its historical landmarks and government buildings.

Statistical Software SAS

A software suite developed by SAS Institute for advanced analytics, multivariate analyses, business intelligence, data management, and predictive analytics.

Programming Proficiency

The level of skill and expertise someone has in writing and understanding computer programs.

Graduate School

An advanced program of study focused on a particular academic discipline or profession, typically pursued after obtaining an undergraduate degree.