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BCD company has one product and the company is currently selling $20,000 units. It has a selling price of $10/unit. Variable costs are $6/unit
BCD company has one product and the company is currently selling $20,000 units. It has a selling price of $10/unit. Variable costs are $6/unit and fixed costs are $50,000. The company's marketing director is convinced that a 20% reduction in price, along with a $50,000 advertising surge, will cause unit sales to triple. If the company implements the director's plan and her assumptions are correct, what will BCD's net operating income (same as net income since there are no taxes) be? $20,000 $30,000 $140,000 D$70,000 $10,000
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