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Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics: Sales price Variable costs Fixed
Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics: Sales price Variable costs Fixed costs 22 per unit 8 per unit 23,000 per month Assume that the projected number of units sold for the month is 6,500. Consider requirements (b), (c), and (d) independently of each other. Required: a. What will the operating profit be? Operating profit 68,000 b. What is the impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent? (Do not round Intermediate calculations.) Sales price decreases by 10 percent Sales price increases by 20 percent Operating profit decreases Operating profit increases by by
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