You Are Presented with the Following Three Scenarios for Yeng

Multiple Choice

You are presented with the following three scenarios for Yeng Company: With regards to Yeng's price, cost, and product, what can be concluded from Scenario #1?

A) Yeng Company has incurred a loss because it is not charging a high enough price to cover the costs incurred.
B) Yeng Company has incurred a loss because its sales in units are lower and cannot cover its costs incurred.
C) Yeng Company could make a profit if it produces and sells three more products.
D) Yeng Company can raise its price to become profitable without having to worry about other competitors with lower selling prices driving it out of the market.