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Ajax Corporation is performing a sensitivity analysis on one of its products. The product currently sells for $210 per unit, with variable cost of $90

Ajax Corporation is performing a sensitivity analysis on one of its products. The product currently sells for $210 per unit, with variable cost of $90 per unit and fixed costs of $400,000. Ajax currently sells 12,000 units of this product. Ajax is considering raising its price by 10%. If prices increase, then it is expected that units sold will decrease by 15%. Calculate the change in operating income.

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