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Keegan Corporation produces and sells a single product. Data for that product are: Management is discussing increasing the price to $550 to cover an increase
Keegan Corporation produces and sells a single product. Data for that product are: Management is discussing increasing the price to $550 to cover an increase in fixed expenses of $84,000. Management believes they might lose 2% of sales per month. What should be the overall effect on the company's monthly operating income if this change is implemented? A. Decrease of $15,400 B. Decrease of $84,000 C. Increase of $15,400 D. Increase of $84,000
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