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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 unit
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 $22,000 per month 10,000 units per month The company believes that the volume will go up to 11,000 units if the company reduces its sales price to $7.5. How would this change affect operating income? A. It will decrease by $2,500. B. It will decrease by $8,000. C. It will increase by $2,500. D. It will increase by $8,000
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