A Small Business Produces a Single Product and Reports the Following

question 134

Multiple Choice

A small business produces a single product and reports the following data: If the company reduces its price to $7.50, it believes that the volume will go up to 11,000 units.
How would this change affect operating income?

• A)It will go up by $7,500.
• B)It will go up by $8,000.
• C)It will go down by $2,500.
• D)It will go down by $4,500.

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Definitions:

Selling Process

A series of steps that a salesperson follows to sell a product or service, from initial contact to closing the sale.

Building Materials

Substances used in the construction of buildings and structures, ranging from natural materials like wood and stone to man-made products like concrete and metal.

Sales Force

A team or division within a company that is focused on selling the company's products or services to customers.

Personal Selling

A direct method in which a salesperson uses person-to-person interaction to demonstrate and sell their product to an individual consumer or business.