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Eastwood Corporation manufactures numerous products, one of which is called Beta 96. The company has provided the following data about this product: Unit sales (a)
Eastwood Corporation manufactures numerous products, one of which is called Beta 96. The company has provided the following data about this product: Unit sales (a) 60,000 Selling price per unit $ 88.00 Variable cost per unit $ 53.00 Fixed expense $ 1,980,000 Management is considering decreasing the price of Beta 96 by 8%, from $88.00 to $80.96. The company's marketing managers estimate that this price reduction would increase unit sales by 10%, from 60,000 units to 66,000 units. Assuming that the total fixed expense does not change, what net operating income will product Beta 96 earn at a price of $80.96 if this sales forecast is correct? O ($134,640) O $1,845,360 O $1,677,600 O ($302,400)
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