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A small business produces a single product and reports the following data: $9.00 per unit- Sales Price $5.30 per unit- variable cost $22,000 per month-Fixed

A small business produces a single product and reports the following data:

$9.00 per unit- Sales Price

$5.30 per unit- variable cost

$22,000 per month-Fixed cost

10,000 units per month- volume

The company believes that the volume will go up to 12,000 units if the company reduces its sales price to $7.50. How would this change affect operating income?

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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 $5.30 per unit $22,000 per month 10,000 units per month The company believes that the volume will 90 up to 12,000 units if the company reduces its sales price to $7.50. How would this change affect operating income? A. It will increase by $15,000. B. It will decrease by $10,600. C. It will increase by $10,600. D. It will decrease by $15,000

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