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2) Flash City Inc. manufactures small flash drives and is considering raising the price by 75 cents a unit for the coming year. With a
2) Flash City Inc. manufactures small flash drives and is considering raising the price by 75 cents a unit for the coming year. With a 75-cent price increase, demand is expected to fall by 7,000 units. Demand Selling price Incremental cost per unit Current 79,000 units $8.50 $5.80 Projected 72,000 units $9.25 $5.80 If the price increase is implemented, operating profit is projected to A) decrease by $5,250 B) increase by $5,250 C) increase by $35,100 D) decrease by $7,000
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