Solved

Flash City Inc

Question 203

Multiple Choice

Flash City Inc.manufactures small flash drives and is considering raising the price by 75 cents a unit for the coming year.With a 75-cent price increase,demand is expected to fall by 7,000 units.
Flash City Inc.manufactures small flash drives and is considering raising the price by 75 cents a unit for the coming year.With a 75-cent price increase,demand is expected to fall by 7,000 units. Would you recommend the 75-cent price increase? A) No,because demand decreased. B) No,because the selling price increases. C) Yes,because contribution margin per unit increases. D) Yes,because operating profits increase.
Would you recommend the 75-cent price increase?


A) No,because demand decreased.
B) No,because the selling price increases.
C) Yes,because contribution margin per unit increases.
D) Yes,because operating profits increase.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q46: When capacity is constrained, relevant costs equal

Q51: Outsourcing is purchasing from outside vendors parts

Q93: For decision making, differential costs assist in

Q155: Which of the following is true of

Q198: Planet Design Services,Inc. ,is considering replacing a

Q199: Genent's Preserves currently makes jams and jellies

Q204: W.T.Ginsburg Engine Company manufactures part ACT31107 used

Q205: The management accountant for Giada's Book Store

Q206: Kinnane's Fine Furniture manufactures two models,Standard and

Q208: Snapper Tool Company has plenty of excess