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A Small Business Produces a Single Product and Reports the Following

Question 131

Multiple Choice

A small business produces a single product and reports the following data: 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 $7,500. B) It will go up by $8,000. C) It will go down by $2,500. D) It will go down by $4,500. 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 $7,500.
B) It will go up by $8,000.
C) It will go down by $2,500.
D) It will go down by $4,500.

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