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Alpha Lighting manufactures small fancy bulbs and is considering raising the price by 50 cents a unit for the following year. With a 50-cent price
Alpha Lighting manufactures small fancy bulbs and is considering raising the price by 50 cents a unit for the following year. With a 50-cent price increase, demand is expected to fall by 3,500 units. Currently Projected Demand 20,000 units 16,500 units Selling price $5.50 $6.00 Incremental cost per unit $3.00 $3.00 5. If the price increase is implemented, operating profit is projected to __________. a. increase by $4,000 b. decrease by $4,000 c. increase by $6,000 d. decrease by $4,500 e. None of the answers
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