A Small Business Produces a Single Product and Reports the Following

question 127

Multiple Choice

A small business produces a single product and reports the following data: $$\begin{array} { | l | l | l | } \hline \text { Sales price } & \$ 8.50 & \text { per unit } \\\hline \text { Variable cost } & \$ 5.25 & \text { per unit } \\\hline \text { Fixed cost } & \$ 22,000 & \text { per month } \\\hline \text { Volume } & 10,000 & \text { units per month } \\\hline\end{array}$$ The company believes that the volume will go up to 12,000 units if the company reduces its sales price to $7.50.How would this change affect operating income?

• A) It will increase by $5500.
• B) It will increase by $10,500.
• C) It will decrease by $5500.
• D) It will decrease by $10,500.

Evaluate the educational and psychological outcomes for children from different family backgrounds.

Recognize the importance of family functions during middle childhood and their influence on child development.

Discern the impact of parental negativity and support on child antisocial behavior and adjustment.

Appreciate the significance of minimizing transitions to mitigate the negative impacts of divorce on children.

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Definitions:

Semi-Strong Form

A hypothesis suggesting that all publicly available information is already reflected in stock prices, negating the ability to earn excess returns.

Information Announcement

A disclosure of new, relevant details intended to inform investors, employees, and the public about a company's financial health, operational changes, or other significant news.

Stock Price

The current price at which a share of a company is being traded on the stock market.

Common Stock

A type of security that represents ownership in a corporation, with holders usually having voting rights and potentially receiving dividends.