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.

---

Definitions:

Information Gathering

The process of collecting data from various sources to analyze situations, make decisions, or increase understanding of a topic.

Performance Threats

Performance threats refer to potential or actual obstacles that can impair the effectiveness and efficiency of an individual's or organization's ability to meet objectives.

Problem Solvers

Individuals or entities adept at finding solutions to challenges or issues.

Information Processing

The act or process of receiving, categorizing, storing, and interpreting data by human or machine systems.