Assume the Following Amounts

question 6

Multiple Choice

Assume the following amounts:

If sales revenue per unit increases to $22 and 12,000 units are sold,what is the operating income?

• A)$264,000
• B)$60,000
• C)$108,000
• D)$84,000

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Definitions:

T-Shirts

A type of clothing characterized by short sleeves, a round neckline, and no collar, typically made of cotton fabric.

Coffee

A beverage made from roasted and ground beans of the coffee plant, commonly consumed for its stimulating effects.

Substitution Effect

The economic principle that as the price of a good or service rises, consumers will replace it with cheaper alternatives.

Utility

represents the total satisfaction received from consuming a good or service.