Tony manufacturing produces a single product that sells for $80. variable costs per unit equal $50. the company expects total fixed costs to be $82,000 for the next month at the projected sales level of 2,800 units. in an attempt to improve performance, management is considering a number of alternative actions. each situation is to be evaluated separately. suppose that management believes that a 14% reduction in the selling price will result in a 14% increase in sales. if this proposed reduction in selling price is implemented a. operating income will decrease by $23,990 b. operating income will decrease by $31,360 c. operating income will increase by $7,370 d. operating income will increase by $23,990

The new york times (nov. 30, 1993) reported that “the inability of opec to agree last week to cut production has sent the oil market into turmoil . . [leading to] the lowest price for domestic crude oil since june 1990.” why were the members of opec trying to agree to cut production? so they could save more oil for future consumption so they could lower the price so they could raise the price why do you suppose opec was unable to agree on cutting production? because each country has a different production capacity because each country experiences different production costs because each country has an incentive to cheat on any agreement the newspaper also noted opec’s view “that producing nations outside the organization, like norway and britain, should do their share and cut production.” what does the phrase “do their share” suggest about opec’s desired relationship with norway and britain? opec would like norway and britain to keep their production levels high. opec would like norway and britain to act competitively. opec would like norway and britain to join the cartel.