The demand for wooden pencils is very responsive to a change in price. That is, the demand for these pencils is highly elastic. Suppose that workers in this industry are successful in negotiating a higher wage from management. As a result: A. The price and quantity of pencils purchased will fall, and gross revenues will rise.
B. Price and quantity purchased will rise, and gross revenues will fall.
C. Price will fall, quantity purchased will rise, and gross revenues will rise.
D. Price will rise, quantity purchased will fall, and gross revenues will fall.

Schonhardt corporation's relevant range of activity is 2,500 units to 5,500 units. when it produces and sells 4,000 units, its average costs per unit are as follows: averagecost per unitdirect materials $ 7.60direct labor $ 2.90variable manufacturing overhead $ 1.65fixed manufacturing overhead $ 2.90fixed selling expense $ 0.95fixed administrative expense $ 0.65sales commissions $ 0.75variable administrative expense $ 0.65if 4,500 units are produced, the total amount of fixed manufacturing cost incurred is closest to: multiple choicea $16,800b $11,400c $11,600d $15,400