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A small business produces a single product and reports the following data: Sales price Variable cost Fixed cost Volume $8.00 per unit $5.00 per
A small business produces a single product and reports the following data: Sales price Variable cost Fixed cost Volume $8.00 per unit $5.00 per unit $23,000 per month units per 10,000 month The company believes that the volume will go up to 13,000 units if the company reduces its sales price to $7.25. How would this change affect operating income? A. It will increase by $7,000. B. It will decrease by $750. C. It will increase by $750. D. It will decrease by $7,000.
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