Answer the Following Questions Using the Information Below:
Contrafic Lighting

question 4

Multiple Choice

Answer the following questions using the information below:
Contrafic Lighting manufactures small flashlights and is considering raising the price by 75 cents a unit for the coming year. With a 75-cent price increase, demand is expected to fall by 7,000 units.
$$\begin{array} { l r r } & \text { Current } & \text { Projected } \\\text { Demand } & 75,000 \text { units } & 68,000 \text { units } \\\text { Selling price } & \$ 8.50 & \$ 9.25 \\\text { Incremental cost per unit } & \$ 4.80 & \$ 4.80\end{array}$$
-If the price increase is implemented,operating profit is projected to ________.

• A) increase by $25,100
• B) decrease by $5,250
• C) increase by $5,250
• D) decrease by $7,000

Identify key components and tools within the CPT manual for effective code verification and utilization.

Understand the implications of non-compliance with coding standards, including potential legal consequences.

Learn about the different sections within the CPT manual and their relevance to specific medical services.

Recognize the role of compliance and quality assurance programs in mitigating fraud risks in medical billing.

---

Definitions:

Civil Service System

A merit-based selection system for government employees excluding military and political appointments, aimed at ensuring competence and impartiality.

Politics

The activities associated with governance, or the debate and conflict among individuals or parties having or hoping to achieve power.

Pendleton Act

A federal law enacted in 1883 that established that positions within the federal government should be awarded on the basis of merit instead of political affiliation.

Spoils System

A practice where a political party, after winning an election, gives government jobs to its voters as a reward for working toward victory.