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A small business produces a single product and reports the following data: Sales price Variable cost Fixed cost Volume $9.00 per unit $5.25 per unit
A small business produces a single product and reports the following data: Sales price Variable cost Fixed cost Volume $9.00 per unit $5.25 per unit $23,000 per month 10,500 units per month The company believes that the volume will go up to 12,000 units if the company reduces its sales price to $7.25. How would this change affect operating income? OA. It will decrease by $15,375. B. It will decrease by $16,375. OC. It will increase by $15,375. OD. It will increase by $16,375
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