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Cambridge, Inc., is considering the introduction of a new calculator with the following price and cost characteristics: Assume that the projected number of units sold
Cambridge, Inc., is considering the introduction of a new calculator with the following price and cost characteristics: Assume that the projected number of units sold for the year is 7,000. Consider requirements (b), (c) and (d) independently of each other. What will the operating profit be? What is the impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent? What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent
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