Pong Incorporated's Income Statement for the Most Recent Month Is

question 120

Multiple Choice

Pong Incorporated's income statement for the most recent month is given below.
-If Store G sales increase by $40,000 with no change in fixed costs,the overall company net operating income should:

• A)increase by $4,000
• B)increase by $8,000
• C)increase by $24,000
• D)increase by $20,000

---

Definitions:

ATC

Average Total Cost, the total cost divided by the quantity of output produced; it's a measure of per-unit production cost.

MC

Short for marginal cost, it represents the change in total cost that arises when the quantity produced is incremented by one unit.

Herfindahl Index

An economic measure of market concentration, calculated by summing the squares of the market shares of all competitors within an industry.

Industry Concentration

A measure of the extent to which a small number of firms dominate the total production, sales, or market share in an industry.