Zipee Inc'S Unit Selling Price Is $90, the Unit Variable Costs

question 47

Multiple Choice

Zipee Inc.'s unit selling price is $90, the unit variable costs are $40.50, fixed costs are $170,000, and current sales are 12,000 units. How much will operating income change if sales increase by 5,000 units?

• A) $125,000 decrease
• B) $175,000 increase
• C) $75,000 increase
• D) $247,500 increase

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Definitions:

Team Level

Average level of ability, experience, personality, or any other factor on a team.

Virtual Teams

Virtual teams refer to groups of individuals who work together from different geographic locations and rely on electronic communication to collaborate.

Affective Conflict

Emotional conflict arising from differences in values, personalities, or perceptions among individuals in a group.

Effective Teams

Groups of individuals working together in a coordinated and cohesive manner towards a common goal.