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4. BJ Jammerz Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that

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4. BJ Jammerz Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for a S2 reduction in the selling price. The company's present seling price is $70 per unit, and variable expenses are S40 per . Fixed expenses are $540,000 per year. The present annual sales volume (at the $70 selling price) is 15,000 units. If the marketing studies are correct and BJ Jammerz decides to implement the price cut, what will be the change in net operating income? a. $110,000 increase b. $20,000 increase c. $110,000 decrease d. $90,000 decrease

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