Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Acri Corporation manufactures numerous products, one of which is called Omicron09. The company has provided the following data about this product: Unit sales (a) 100,000

Acri Corporation manufactures numerous products, one of which is called Omicron09. The company has provided the following data about this product:

Unit sales (a) 100,000
Selling price per unit $ 78.00
Variable cost per unit 49.00
Contribution margin per unit (b) $ 29.00
Total contribution margin (a) (b) $ 2,900,000
Traceable fixed expense 2,480,000
Net operating income $ 420,000

Assume that the total traceable fixed expense does not change. If Acri decreases the price of Omicron09 to $71.76, what percentage change in unit sales would provide the same net operating income as is currently being earned at a price of $78.00? (Your answer should be rounded to the nearest 0.1%.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

IFRS 3rd edition

1118978080, 978-1119153726, 1119153727, 978-1119153702, 978-1118978085