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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 costs
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 24 per unit 6 per unit 24,000 per month Assume that the projected number of units sold for the month is 7500. Consider requirements (01.(d, and (independently of each other Required: 6. What will the operating profit be? Answer is complete and correct Operating profit 111.000 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.) Answer is complete and correct. decreases by $18.000 Sales price decreases by 10 percent Sales price increases by 20 percent Operating profil Operating profit increases by $ 38,000 c. What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent? (Do not round intermediate calculations.) Answer is complete and correct. by $4,500 Venable costs per unit decrease by 10 Variable costs por unos toy 20 Operating peo Operating decreases by 59.000 d. Suppose that fixed costs for the year are 10 percent lower than projected, and variable costs per unit are 10 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much? (Do not round Intermediate calculations.) Answer is complete but not entirely correct. decreases $ 2.100
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