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:

Retrieval

The process of accessing and bringing into consciousness information stored in memory.

Retention

The ability to store and recall information or experiences over time, a fundamental aspect of learning and memory processes.

Storage

In the context of psychology, it refers to the retention of information in the brain over time; a key component of the memory process.

Trace Consolidation

The process by which memories become more stable in the brain, transforming from a vulnerable state to a more permanent one.