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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) Selling
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) Selling price per unit Variable cost per unit Traceable fixed expense 78,800 $ 83.80 $ 53.80 $1,930,501 Management is considering decreasing the price of Beta-96 by 996, from $83.00 to $75.53. The company's marketing managers estimate that this price reduction would increase unit sales by 9%, from 78,000 units to 85,020 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Beta-96 earn at a price of $75.53 this sales forecast is correct? Multiple Choice $(173,16) (15.000) $1757340 $1,915,501
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