Butler Automotive developed a new diagnostic testing procedure that is expected to increase sales by $10,000 per month. As more drivers bring in their vehicles, Butler expects to also do more oil changes and brake repairs. As a result, inventory levels of oil and brake parts must be increased by $5,000. Revenues from oil changes and brake jobs are expected to increase by$4,000 per month. An example of a synergistic effect from the new diagnostic testing procedure is the

Question content area bottom

Part 1

A.

increase in revenue of $10,000 per month for the diagnostic testing.

B.

increase in inventory levels of oil and brake parts.

C.

increase in all activities totaling $19,000 per month.

D.

increase in revenues from oil changes and brake jobs of $4,000 per month.