Answer the following questions using the information below:
Sharjah Lighting manufactures small flashlights and is considering raising the price by 50 cents a unit for the coming year. With a 50-cent price increase, demand is expected to fall by 6,000 units.

-If the price increase is implemented, operating profit is projected to:
A) increase by $8,000
B) increase by $12,000
C) decrease by $9,000
D) decrease by $8,000

Question

Answer the following questions using the information below:
Sharjah Lighting manufactures small flashlights and is considering raising the price by 50 cents a unit for the coming year. With a 50-cent price increase, demand is expected to fall by 6,000 units.
 
-If the price increase is implemented, operating profit is projected to:
A) increase by $8,000 
B) increase by $12,000 
C) decrease by $9,000 
D) decrease by $8,000

Quizplus · Accepted Answer

The Answer is A

Answer the Following Questions Using the Information Below