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Barrier Corporation is performing a senstvity analysis on one of its product. The product currently sells for $75 per unit, with variable cost of S46

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Barrier Corporation is performing a senstvity analysis on one of its product. The product currently sells for $75 per unit, with variable cost of S46 per unit and fixed costs of $100,000. Barrier currently sells 80,000 units of this product. Barrier is considering reducing its price by 10% prices decrease, men it is expected that units sold will increase by 8% Calculate the change in operating income O 5248 500 increase 5462400 decrease 05462.400 increase O $248.500 decres The greater the ratio of variable costs to sales, the lower the benefit of conducting a sensitivity analysis. lower the level of profitability. more units must be sold to cover fixed costs.. O more each additional sale contributes to coverage of fixed costs

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