(Ineremental earnings from lowering product prices) Apple's (AAPL) IPad jump starled the touchicreen computer market to lovels fow analysts had ever dreamed poss ble. Moreover, the popularily of the IPad pushed Apples's competiors to offer similar foochscreen compulers. Hewlett Packavd oflered its Slate product and others soon followed sut. One such manutacturer was Soico industries. The Soko product the aPad, had a number of appealing features but the pelative obscurity of the company did not help product sales. In tact, the spad was ingialy sold for \$7oo, and diappointing sales led Soko industries management to considor taking a 25 percont price break on is sPad, which coste 5400 to manulacture and seth. a. If Soko goes through with the price adjustment and it leads to total sales of 350,000sPads, what are the incremental terenues atributable to the new pricing strategy? b. Now suppose that for each new sPad it sels, the fimm also sels an average of 5100 worth of applications on which the firm has 60 peroent operating profit margins fie, the fim eachs $60 in additonal operating profts for each 5100 in application sales). What is the incremental inpact on firm operating protis of the new lowerprice strategy under these conditions? a. If Soko goes through with the peice adjustment and it leads to total sales of 350.000 s.Pads, the incremental revenues atirbutable to the new pricing strategy it (Select the bert choice below. ) A. 5183,750,000 B. 5105,000,000 c. 5245.000 .000 D. 543.750 .000 b. "By indoding the 500 in addtional operating profts from agplications, we also need to indude 350,000 units 560 i $21,000,000. Thus, the incremental revenus of the project attibutable to ithe hew priong trateoy should be 564,750,000." is the statement above cortect? (Select trom the drog-down menu.) True: False