A small business produces a single product and reports the following data Sales price $9.00 per unit variable cost $5.25 per unit $23,000 per month Fixed cost Volume 10,500 units per month units if the company reduces sales to $7 The company believes that the volume will go up to 13,000 its price How would this change affect operating income? O A. t will decrease by $13,375. O B. t will decrease by $16,375 O C. It will increase by $13,375. O D. It will increase by $16,375.
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