When analyzing the change in operating income, the strategy component of price-recovery will increase when:
A)capacity is reduced
B)production efficiencies are successfully implemented
C)selling prices are increased
D)more units are sold

Question

Quizplus · Accepted Answer

Price-recovery strategy component refers to the ability to increase prices. Therefore, the strategy component will increase when selling prices are increased. The other options may impact operating income, but they do not necessarily relate to the price-recovery strategy component.

When Analyzing the Change in Operating Income, the Strategy Component