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Contrafic Lighting manufactures small flashlights and is considering raising the price by 75 cents a unit for the coming year. With a 75-cent price increase,

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Contrafic Lighting manufactures small flashlights and is considering raising the price by 75 cents a unit for the coming year. With a 75-cent price increase, demand is expected to fall by 7,000 units. Current 75,000 units Demand Selling price Incremental cost perurit Projected 68,000 units $10.25 $5.8 $95 $5.8 Would you recommend the 75 cent price increase? Yes, because contribution margin per unit increases Yes, because operating profits increase No, because demand decreased No, because the selling price increases

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