A small business produces a single product and reports the following data: 
If the company reduces its price to $7.50, it believes that the volume will go up to 11,000 units. How would this change affect operating income?
A) It will go up by $2,500.
B) It will go up by $9,000.
C) It will go down by $2,500.
D) It will go down by $9,000.
Correct Answer:
Verified
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