MPC Lobo Apps Cloud Dasht × ! Pearson eTut X Pearson eTest pDo Homework ..hra ch

Question

MPC Lobo Apps Cloud Dasht × ! Pearson eTut X Pearson eTest pDo Homework ..hra cho × d, https://www mathx.constudent/PlayerTest.aspx?testid.1787990878centerwinayes BUSI 1B Spring 2018 O'Dell Test: Chapter 20 CVP Analysis Test This Question: 2 pts 4of4(2complete) A small business produces a single product and reports the following dats Sales price Variable cost Fxed cost Volume $8.50per unit $5 25per unit $22,000per month 10,000 units per month The company believes that the volume will go up to 12.000 units if the company reduces its sales price to $7.50 How would this change afect operating income? C It wll increase by $10.500 O D. It will decrease by $10.500 Click to select your answer

Explanation / Answer

Answer: Option B

7.50

Hence Option B

Existing Sales price per unit (for 10,000 units) 8.50

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