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2 - Ch03 Exercises of Problems - Connect MeGraW-Hill Connect Exercises & Problems i Sorved Grove Audio is considering the introduction of a new model
2 - Ch03 Exercises of Problems - Connect MeGraW-Hill Connect Exercises & Problems i Sorved Grove Audio is considering the introduction of a new model of wireless speakers with the following price and cost characteristics. Sales price Variable costs Fixed costs $443.00 per unit 203.00 per unit 715,000 per year Assume that the projected number of units sold for the year is 4,400 . Consider requirements (b). (c), and (c) independently of each other. Required: a. What will the operating profit be? b. What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? c. What is the impact on operating profit if variable costs per unit decrease by 10 percent
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