A Small Business Produces a Single Product and Reports the Following

question 62

Multiple Choice

A small business produces a single product and reports the following data: The company's variable cost goes up by $0.75 per unit, so they raise the price by the same amount.
Assume other factors remain the same. 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 stay the same.

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Definitions:

Lagoon

A shallow body of water separated from a larger sea by barrier islands or reefs.

Past Participle

A grammatical form of a verb used to form perfect tenses and passive voice, typically ending in -ed, -en, or an irregular form.

Backup Generator

A secondary power source that automatically provides electricity to a building or facility during a power outage.

Fire Station

A facility housing fire engines and firefighters, serving as a base for responding to fire emergencies.