Block Island TV currently sells large televisions for $380. It has costs of $320. A competitor is bringing a new large television to market that will sell for $360. Management believes it must lower the price to $360 to compete in the market for large televisions. Marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. Block Island TV sales are currently 150,000 televisions per year.
What is the change in operating income if marketing is correct and only the sales price is changed?
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Block Island TV currently sells large televisions for $380. It has costs of $320. A competitor is bringing a new large television to market ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Indicate all items in the following list that are not consumption goods and services and explain why. Item a : A chocolate barItem b : A ski liftItem c : A golf ballItem d : A shopping mallItem e : A trainItem f : A golf course
Answers (1)
4. Many rules must be adopted using the notice-and-comment rulemaking procedure, which includes giving the proposed rulemaking, allowing for a period of time for from the public, and the issuance of the rule.
Answers (2)
Which of the following is not considered when calculating a country's GDP? a. goods produced by government agencies or commissions b. goods produced in the country by people who are not citizens c. services produced in the country d.
Answers (2)
What part of a check is the least important
Answers (1)
What talents or skills do u admire most in others
Answers (2)
New Questions in Business
Waupaca Company establishes a $440 petty cash fund on September 9. On September 30, the fund shows $193 in cash along with receipts for the following expenditures: transportation-in, $46; postage expenses, $78; and miscellaneous expenses, $111.
Answers (1)
On September 1, the board of directors of Colorado Outfitters, Inc., declares a stock dividend on its 16,000, $7 par, common shares. The market price of the common stock is $36 on this date.
Answers (1)
Catherine and Jacob have a written contract to buy and sell "100 cases of widgets." The 100 cases is a typo, so after signing the contract they orally agree to modify the contract to "1,000 cases of widgets.
Answers (2)
Is accounts receivable a material component of the company's total current assets?
Answers (1)
Packaging that provides convenience, product quality, protection, or easy storage offers what kind of benefits to customers?
Answers (1)