Zipee Inc'S Unit Selling Price Is $90, Unit Variable Costs Are

question 118

Multiple Choice

Zipee Inc.'s unit selling price is $90, unit variable costs are $40.50, fixed costs are $170,000, and current sales are 12,000 units. How much will operating income change if sales increase by 5,000 units?

• A) $125,000 decrease
• B) $175,000 increase
• C) $75,000 increase
• D) $247,500 increase

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Definitions:

Laissez-faire Managers

Managers who adopt a hands-off approach, allowing employees to make decisions and solve problems independently.

Organization Man Manager

Describes a manager who conforms to the corporate culture and policies very strictly, often prioritizing the company's needs over personal values or creativity.

Authority-compliance Manager

describes a leadership style focused predominantly on efficiency and task completion, often at the expense of team member relationships and morale.

Impoverished Manager

An impoverished manager adopts a low concern for both people and production, minimizing involvement in leadership duties and often resulting in a lack of innovation and motivation within teams.