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?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get 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 there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
What is the difference between password protection and encryption? Encryption allows the user to edit but not save changes. Password protection restricts access to users who know the password.
Answers (1)
Money Market Mutual Find Balances held by Businesses $100 Money Market Mutual Fund Balances held by Individuals 220 Currency in Banks 10 Currency in circulation 60 Savings deposits, including money market deposit accounts 50 Large denominated
Answers (1)
We say that an economy experience inflation if - prices of all goods have increased. - relative price between capital goods and consumption goods has increased. - GDP deflator this year is smaller than GDP deflator of the previous year.
Answers (1)
Consider two goods - one that generates external benefits and another that generates external costs. The actual market outcome woulda. result in a price that is lower than the efficient price for both goods. b.
Answers (1)
Refers to the basic economic problem, the gap between limited resources and unlimited wants. A) Economics B) Opportunity costs C) Scarcity D) Shortage
Answers (1)
New Questions in Business
A firm has sales of $3,340, net income of $274, net fixed assets of $2,600, and current assets of $920. The firm has $430 in inventory. What is the common-size statement value of inventory?
Answers (1)
According to the graph, how do expansionary fiscal policies affect the economy? a. The government decreases spending to save more money. b. The government increases spending to raise output of goods and services and create jobs in the short term. c.
Answers (1)
John and Barb could have drawn attention to their services in several ways by using effective integrated marketing communications.
Answers (1)
What's it called when you look in the internet for medical symptoms?
Answers (1)
Rob Grier, a friend of yours, has recently purchased a home for $125,000, paying $25,000 down and the remainder financed by a 10.5%, 20-year mortgage, payable at $998.38 per month.
Answers (1)