When analyzing the change in operating income, the strategy component of price-recovery will increase when ________.
A) capacity is reduced
B) market share is increased
C) selling prices are increased
D) more units are sold

Question

Quizplus · Accepted Answer

Price-recovery is a strategy of increasing selling prices to recover costs and increase profits. Therefore, when selling prices are increased, the price-recovery strategy component will increase, resulting in a potential increase in operating income. The other options may or may not affect operating income, but they are not directly related to the price-recovery strategy.

When Analyzing the Change in Operating Income, the Strategy Component