A Small Business Produces a Single Product and Reports the Following

question 25

Multiple Choice

A small business produces a single product and reports the following data: The company's variable cost goes up by $0.25 per unit. Fixed costs are lowered from $21,000 to $18,000. Assume other factors remain the same. How would this change affect operating income?

• A)It will go up by $500.
• B)It will go up by $800.
• C)It will go down by $2,500.
• D)It will stay the same.

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Definitions:

Cognitive Revolution

A significant shift in psychology during the mid-20th century, focusing on the study of mental processes such as thinking, memory, and language.

Mental Processes

Mental Processes are the internal, covert activities of our minds, such as thinking, feeling, and remembering.

Unifying Themes

Central ideas or concepts that link together various elements of a study or narrative.

New Research Methods

Innovative approaches, techniques, or strategies employed in the pursuit of understanding, exploring, and analyzing research questions or problems.