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

question 47

Multiple Choice

Zipee Inc.'s unit selling price is $90, the 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

Understand the principle of aggregation and its role in enhancing measurement reliability.

Grasp the importance of valid and reliable data collection methods in psychological research.

Understand the distinction between reliability and validity, and the conditions under which each is necessary.

Recognize the importance of constructing validation and its role in psychological testing and assessment.

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Definitions:

Price Elasticity

An indicator that shows the degree to which the demand for a product or service fluctuates following a price adjustment.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing and able to purchase at various prices over a specific period.

Price Elasticity

Price elasticity measures how the quantity demanded of a good or service changes in response to a change in its price. It signifies the responsiveness of demand to price changes.

Quantity Demanded

Refers to the total amount of a good or service that consumers are willing and able to purchase at a given price in a specified period.