A Small Business Produces a Single Product and Reports the Following

question 107

Multiple Choice

A small business produces a single product and reports the following data: Fixed costs go up by $2,000 per month, and the price is raised by $0.20 per unit. 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 $1,500.
• C)It will go down by $2,500.
• D)It will stay the same.

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Definitions:

Nursing Faculty

Academic and clinical instructors responsible for educating nursing students in colleges or universities.

Emergency Department

A specialized department in a hospital that provides immediate care to patients with acute illnesses or injuries.

Cardiopulmonary Resuscitation

A lifesaving technique used in medical emergencies, involving chest compressions often combined with artificial ventilation, to preserve brain function until further measures to restore spontaneous blood circulation and breathing in a person who is in cardiac arrest.

Brittle Bones

A term commonly associated with osteogenesis imperfecta, a genetic disorder characterized by fragile bones that break easily.