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
A) increase in revenue of $10,000 per month for the diagnostic testing.
B) increase in revenues from oil changes and brake jobs of $4,000 per month.
C) increase in inventory levels of oil and brake parts.
D) increase in all activities totaling $19,000 per month.
B
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