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A small business produces a single product and reports the following data: Sales Price: $9.00 per unit Variable costs: $5.00 per unit Fixed costs: $21,000
A small business produces a single product and reports the following data:Sales Price: $9.00 per unit Variable costs: $5.00 per unit Fixed costs: $21,000 per month Volume: 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 seven dollars. How would this change affect operating income?
Sales Price: $9.00 per unit
Variable costs: $5.00 per unit
Fixed costs: $21,000 per month
Volume: 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 seven dollars. How would this change affect operating income?
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Management And Organisational Behaviour
Authors: Laurie Mullins
7th Edition
9780273688761
