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A small business produces a single product and reports the following data: Sales price Variable cost Fixed cost Volume $8.50 per unit $5.30 per
A small business produces a single product and reports the following data: Sales price Variable cost Fixed cost Volume $8.50 per unit $5.30 per unit $21,000 per month 10,000 units per month The company believes that the volume will go up to 13,000 units if the company reduces its sales price to $7.50. How would this change affect operating income? OA. It will increase by $3,400. OB. It will decrease by $3,400. OC. It will increase by $11,000. OD. It will decrease by $11,000.
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