This question is to be considered independently of all other questions relating to Bohlen Corporation. Refer to the original data when answering this question.
-The marketing manager would like to cut the selling price by $17 and increase the advertising budget by $42,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 1,000 units. What should be the overall effect on the company's monthly net operating income of this change?
A)increase of $85,000
B)increase of $121,000
C)decrease of $85,000
D)decrease of $17,000

Question

Quizplus · Accepted Answer

The Answer of This question is to be considered independently of all other questions relating to Bohlen Corporation. Refer to the original data when answering this question.
-The marketing manager would like to cut the selling price by $17 and increase the advertising budget by $42,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 1,000 units. What should be the overall effect on the company's monthly net operating income of this change?
A)increase of $85,000
B)increase of $121,000
C)decrease of $85,000
D)decrease of $17,000

This Question Is to Be Considered Independently of All Other