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Jenan Company manufactures special shoes and is considering dropping the price by $5 a pair for the coming year. With a $5 price drop,
Jenan Company manufactures special shoes and is considering dropping the price by $5 a pair for the coming year. With a $5 price drop, demand is expected to increase by 10%. CURRENTLY PROPOSED Quantity 10,000 units 11,000 units Selling Price per $ 45.00 $ 40.00 Unit Variable Cost per $ 26.00 $26.00 Unit If the price increase is implemented, operating profit is projected to: a. Decrease by $14,500 b. Increase by $19,000 C. Decrease by $36,000 d. Increase by $36,000
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