Answer the Following Questions Using the Information Below

question 54

Multiple Choice

Answer the following questions using the information below:
Schwimmer Lighting manufactures small flashlights and is considering raising the price by 50 cents a unit for the coming year. With a 50-cent price increase, demand is expected to fall by 6,000 units.

-Would you recommend the 50-cent price increase?

• A)No, because demand decreased.
• B)No, because the selling price increases.
• C)Yes, because contribution margin per unit increases.
• D)Yes, because operating profits increase.

---

Definitions:

Discrepancy

A lack of compatibility or agreement between two or more facts, figures, or perceptions.

Expertise

Exceptional skill or knowledge in a particular field or area, acquired through training, study, or practice.

Urban Farmer

An individual who engages in agriculture or farming practices within a city or urban area, often focusing on the cultivation of fruits, vegetables, and other produce in small or limited spaces.

Community Garden

Public plots of land used collectively by people of a community for growing plants and vegetables, often enhancing social ties and local food security.