Zipee Inc'S Unit Selling Price Is $90, the Unit Variable Costs

question 47

Multiple Choice

Zipee Inc.'s unit selling price is $90, the unit variable costs are $40.50, fixed costs are $170,000, and current sales are 12,000 units. How much will operating income change if sales increase by 5,000 units?

• A) $125,000 decrease
• B) $175,000 increase
• C) $75,000 increase
• D) $247,500 increase

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Definitions:

Turning Schedule

A schedule developed for patients, especially those who are bedridden, to ensure they are turned at regular intervals to prevent pressure ulcers.

Pressure Ulcers

Areas of damaged skin and tissue that develop when sustained pressure cuts off circulation, typically in individuals with limited mobility; also known as bedsores or decubitus ulcers, emphasizing the serious health implications and the need for preventative measures.

Skin Breakdown

The loss of integrity of the skin, often resulting from prolonged pressure or friction, leading to ulcers or wounds.

Expected Outcomes

Anticipated result or effect of a specific intervention or course of action in a healthcare context.