Sutton Company Produces Flash Drives for Computers, Which It Sells

question 32

Multiple Choice

Sutton Company produces flash drives for computers, which it sells for $20 each.Each flash drive costs $6 of variable costs to make.During April, 700 drives were sold.Fixed costs for April were $4 per unit for a total of $2,800 for the month.How much does Sutton's operating income increase for each $1,000 increase in revenue per month?

• A)$700
• B)$500
• C)$14,000
• D)Not enough information to determine the answer.

---

Definitions:

Self-Stimulation

The action of stimulating oneself, especially in the context of learning or exploring one's own body.

Sensorimotor Stage

The first stage in Piaget's theory of cognitive development, where infants learn through interacting with their environment using senses and motor actions.

Piaget

Swiss psychologist known for his pioneering work in child development, particularly regarding cognitive development and the stages of learning in children.

Formal Operational

The stage in Piaget's theory of cognitive development during which individuals develop the ability to think abstractly and reason logically.