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Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics: Sales prico Varinble costs Fixed costs
Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics: Sales prico Varinble costs Fixed costs 25 per unit 7 per unit 26,000 per month Assume that the projected number of units sold for the month is 6,000. Consider requirements (b), (c), and (d) independently of each other Required a. What will the operating profit be? $82,000 perating profit b. What is the impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent? (Do not round Intermediate calcula Sales price decreases by 10 percent Operating profit decreases by15000 Sales price increases by 20 percent Operating profit increases bys 30,000 d. Suppose that fxed coats tor these cost changes have on operating proft for the year? will profit go up? Down? By how much? (Do not round Intermedlato calculations.) and variable costs per unit are 10 percent higher than projected. What impact w lower than projected, 1,600
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