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Business, 21.12.2019 05:31 npellot123

Woodridge corporation manufactures numerous products, one of which is called alpha-32. the company has provided the following data about this product: unit sales (a) 97,000 selling price per unit $ 75.00 variable cost per unit $ 60.00 traceable fixed expense $ 1,304,000 management is considering increasing the price of alpha-32 by 6%, from $75.00 to $79.50. the company’s marketing managers estimate that this price hike would decrease unit sales by 5%, from 97,000 units to 92,150 units. assuming that the total traceable fixed expense does not change, what net operating income will product alpha-32 earn at a price of $79.50 if this sales forecast is correct?

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