Final answer:
The correct answer is B) Yes, because gross margin increases for 2016.
Step-by-step explanation:
The question asks whether Violet should increase the selling price in 2016. To determine the answer, we need to consider the factors mentioned in the options. A) Increasing the selling price can lead to an increase in sales revenue. B) Increasing the selling price can lead to an increase in gross margin. C) Decreasing sales volume is mentioned as a reason not to increase the selling price. D) Decreasing operating income is also mentioned as a reason not to increase the selling price.
Based on this information, the correct answer would be B) Yes, because gross margin increases for 2016. Increasing the selling price can result in higher profits and therefore would be a favorable strategy for the company.