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7 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)
7 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) Selling price per unit Variable cost per unit Traceable fixed expense 70,000 $ 89.00 $ 71.00 $1,539,000 Management is considering increasing the price of Alpha-32 by 7%, from $89.00 to $95.23. The company's marketing managers estimate that this price hike would decrease unit sales by 8%, from 70,000 units to 64,400 unitsAssuming that the total traceable fixed expense does not change, what net operating income will product Alpha-32 earn at a price of $95.23 if this sales forecast is correct? Multiple Choice $157,100 K Prev 7 of 10 Next> 7 Multiple Choice $157,100 $1,696,100 $21,412 $1,560,412 The project profitability index and the internal rate of return Multiple Choice will always result in the same preference ranking for investment projects will sometimes result in different preference rankings for investment projects. are less dependable than the payback method in ranking investment projects. are less dependable than net present value in ranking investment projects
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