Answer the Following Questions Using the Information Below:
Bright Lights

question 197

Multiple Choice

Answer the following questions using the information below:
Bright Lights Company 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 3000 units.
$$\begin{array} { l r r } & \text { Currently } & \text { Projected } \\\text { Demand } & 20000 \text { units } & 18000 \text { units } \\\text { Selling price } & \$ 4.50 & \$ 5.00 \\\text { Incremental cost per unit } & \$ 3.00 & \$ 3.00\end{array}$$
-If the price increase is implemented,operating profit is projected to:

• A)decrease by $4500.
• B)decrease by $4000.
• C)increase by $6000.
• D)increase by $4000.

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Definitions:

Employment Relationship

The legal link between employers and employees wherein employees agree to perform certain tasks in exchange for compensation.

Automobile Accident

A collision involving one or more vehicles, which can result in property damage, personal injury, and sometimes fatalities.

Employer

An individual or organization that hires and pays people for their work.

Employee

An individual who works part-time or full-time under a contract of employment, providing labor or services to an employer for compensation.