A small business produces a single product and reports the following data: The company's variable cost goes up by $0.25 per unit. Fixed costs are lowered from $21,000 to $18,000. 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 $0.25 per unit. Fixed costs are lowered from $21,000 to $18,000. Assume other factors remain the same. How would this change affect operating income?

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The Answer of A small business produces a single product and reports the following data:  The company's variable cost goes up by $0.25 per unit. Fixed costs are lowered from $21,000 to $18,000. Assume other factors remain the same. How would this change affect operating income?

A Small Business Produces a Single Product and Reports the Following