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Knoll, Inc. currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit, and fixed costs of $300,000. Knoll is

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Knoll, Inc. currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit, and fixed costs of $300,000. Knoll is considering increasing the price of its units to $60 per unit. This will not affect costs, but demand is expected to drop 20%. Should Knoll increase the cost of its product? O No, profit will decrease $30,000. O No, profit will decrease $150,000. O Yes, profit will increase $150,000. O Yes: profit will increase $30,000. 17

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