Solved

Cobble Corporation Produces and Sells a Single Product

Question 192

Multiple Choice

Cobble Corporation produces and sells a single product. Data concerning that product appear below: Cobble Corporation produces and sells a single product. Data concerning that product appear below:   Fixed expenses are $499,000 per month. The company is currently selling 5,000 units per month. The marketing manager would like to cut the selling price by $13 and increase the advertising budget by $33,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 900 units. What should be the overall effect on the company's monthly net operating income of this change? A)  increase of $56,100 B)  decrease of $8,900 C)  increase of $99,300 D)  decrease of $56,100 Fixed expenses are $499,000 per month. The company is currently selling 5,000 units per month. The marketing manager would like to cut the selling price by $13 and increase the advertising budget by $33,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 900 units. What should be the overall effect on the company's monthly net operating income of this change?


A) increase of $56,100
B) decrease of $8,900
C) increase of $99,300
D) decrease of $56,100

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions