Answer the Following Questions Using the Information Below:
Bright Inc

question 167

Multiple Choice

Answer the following questions using the information below:
Bright Inc., manufactures table lamps and is considering raising the price by $30 a unit for the coming year. With a $30 price increase, demand is expected to fall by 2,000 units.
$\begin{array}{lrr}&\text { Currently }&\text { Projected }\\\text { Demand } & 20,000 \text { units } & 18,000 \text { units } \\\text { Selling price } & \$ 150 & \$ 180 \\\text { Variable costs per unit } & \$ 100 & \$ 100\end{array}$
-Would you recommend the $30 price increase?

• A) No, because demand decreased.
• B) No, because the contribution margin decreases.
• C) Yes, because inventory turnover increases.
• D) Yes, because operating income increases.

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Definitions:

Atomic Components

The simplest parts or elements of something that cannot be divided further without losing its essential properties.

Atomic Statements

Simple statements that cannot be broken down into smaller parts, each representing a single fact or proposition.

Connectives

Logical operators that connect propositions or sentences, such as "and," "or," and "not."

Main Connective

The logical function within a complex statement that establishes the truth value of the entire proposition.