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10.00 value: 10.00 points Balance, Inc., is considering the introduction of a new energy snack with the following price and cost characteristics: $ Sales price
10.00 value: 10.00 points Balance, Inc., is considering the introduction of a new energy snack with the following price and cost characteristics: $ Sales price Variable costs Fixed costs 1.00 per unit 0.20 per unit 400,000 per month Assume that the company plans to sell 600,000 units per month. Consider requirements (b), (c), and (d) independently of each other. Required: (a) What will be the operating profit? Operating profit (b) What is the impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent? Sales price decreases by 10 percent: Sales price increases by 20 percent: Operating profit Operating profit by by
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