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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 270 per unit 120
Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics Sales price 270 per unit 120 per unit Variable costs Fixed costs 300,000 per month Assume that the projected number of units sold for the month is 5,000. Consider requirements (b), (c), and (d) independently of each other Required: a. What will the operating profit be? Operating profit b. What is the impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent? by Sales price decreases by 10 percent Operating profit Sales price increases by 20 percent Operating profit by
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