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A company manufactures cell phones charges and is considering raising the price by .75 cents a unit for the coming year. With a .75 cent
A company manufactures cell phones charges 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 700 units.
Demand 79000 units 72000 units
Selling price$8.50 $9.25
Incremental cost per unit$5.80$5.80
If the price increase is implemented, operating profit is projected to
a)increase by 5250
b)increase by 35100
c)decrease by 7000
d)decrease by 5250
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