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a) $1,381,965 b) $1,454,700 c) $122,965 d) $195,700 Woodridge Corporation manufactures numerous products, one of which is called Alpha-32. The company has provided the following
a) $1,381,965
b) $1,454,700
c) $122,965
d) $195,700
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 78,000 $ 73.00 $58.00 $1,259,000 Management is considering increasing the price of Alpha-32 by 5%, from $73.00 to $76.65. The company's marketing managers estimate that this price hike would decrease unit sales by 5%, from 78,000 units to 74100 unitsAssuming that the total traceable fixed expense does not change, what net operating income will product Alpha-32 earn at a price of $76.65 if this sales forecast is correctStep by Step Solution
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