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Johnson is considering raising the selling price of its product by 10%. The higher selling price is expected to cause a 10% decrease in sales
Johnson is considering raising the selling price of its product by 10%. The higher selling price is expected to cause a 10% decrease in sales volume. What would be the increase or decrease in net income if both of these changes occur?
a. Increase of $8,400 | ||
b. Decrease of $5,600 | ||
c. Decrease of $4,200 | ||
d. Net income would be unchanged. |
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