A small business produces a single product and reports the following data: The company's variable cost goes up by $0.75 per unit, so they raise the price by the same amount.
Assume other factors remain the same. How would this change affect operating income?

Question

A small business produces a single product and reports the following data:  The company's variable cost goes up by $0.75 per unit, so they raise the price by the same amount.
Assume other factors remain the same. How would this change affect operating income?

Quizplus · Accepted Answer

The Answer of A small business produces a single product and reports the following data:  The company's variable cost goes up by $0.75 per unit, so they raise the price by the same amount.
Assume other factors remain the same. How would this change affect operating income?

A Small Business Produces a Single Product and Reports the Following