Spice Inc'S Unit Selling Price Is $60, the Unit Variable Costs

question 92

Multiple Choice

Spice Inc.'s unit selling price is $60, the unit variable costs are $35, fixed costs are $125,000, and current sales are 10,000 units. How much will operating income change if sales increase by 8,000 units?

• A) $150,000 decrease
• B) $175,000 increase
• C) $200,000 increase
• D) $150,000 increase

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Definitions:

Oval Window

A membrane-covered opening that leads from the middle ear to the inner ear, transmitting sound vibrations to the cochlea.

Ossicle's Amplified Vibrations

The process by which the small bones in the middle ear amplify sound vibrations for hearing.

Cochlea

A spiral-shaped cavity of the inner ear that plays a key role in the process of hearing by converting sound vibrations into nerve impulses.

Reds And Greens

Often refers to color vision and the ability to distinguish between these two colors, which can indicate normal or defective color vision.