Vineyard Company Has Three Product Lines: A,B and C

question 141

Multiple Choice

Vineyard Company has three product lines: A,B and C.The following annual information is available: Assume Vineyard Company can increase the selling price of Product C to $30,000.Assume all other information remains the same.What will happen to operating income?

• A)increase $3,600
• B)increase $6,000
• C)decrease $3,600
• D)decrease $6,000

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Definitions:

Units Produced

The total quantity of finished goods a company produces over a specific period of time.

Product Costs

Expenses directly associated with the production of goods or services, including materials, labor, and manufacturing overhead.

Variable Cost

A cost that varies with the level of output, including expenses such as materials and labor directly tied to the production volume.

Units Sold

The cumulative amount of a product sold over a designated time frame.