Murphy Company Produces Flash Drives for Computers Which It Sells

question 70

Multiple Choice

Murphy 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 $2800 for the month. How much does Murphy's operating income increase for each $1000 increase in revenue per month?

• A) $700
• B) $500
• C) $14000
• D) Not enough information to determine the answer.

---

Definitions:

Implicit Memory

A type of long-term memory that enables people to perform tasks without conscious awareness of these previous experiences.

Explicit Memory

A type of long-term memory involving the conscious recollection of facts and experiences, such as remembering a specific event or information.

Eidetic Memory

The rare ability to vividly recall images, sounds, or objects in memory with great precision and detail, often referred to as photographic memory.

Procedural Memory

A type of long-term memory responsible for knowing how to do things, such as riding a bicycle or typing, also referred to as muscle memory.