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Jen's Shampoo Company currently earns $40,000 net income. The marketing manager believes reducing the sales price from $28 to $25 will increase sales volume from
Jen's Shampoo Company currently earns $40,000 net income. The marketing manager believes reducing the sales price from $28 to $25 will increase sales volume from 4,375 to 5,000 units. Variable costs are $12 per unit and total fixed costs are $30,000. If the sales price is reduced and the volume increases as expected, net income will be?
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