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Knowledge Check 01 Nappa Corporation manufactures numerous products, one of which is called CD-100. The company has provided the following data about this product: Unit
Knowledge Check 01 Nappa Corporation manufactures numerous products, one of which is called CD-100. The company has provided the following data about this product: Unit sales (a) Selling price per unit Variable cost per unit Traceable fixed expense 50,000 $ 20.00 $ 12.00 $360,000 Nappa is considering increasing the price of CD-100 by 10%, from $20.00 to $22.00. The company's marketing managers estimate that this price hike would decrease unit sales by 10%, from 50,000 units to 45,000 units. Assuming that the total traceable fixed expense does not change, what net operating income will product CD-100 earn at a price of $22.00 if this sales forecast is correct? O $40,000 $140,000 O $0 O $90,000
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