LeBlanc Lighting manufactures table lamps and is considering raising the price by $15 a unit for...

Transcribed Image Text:

LeBlanc Lighting manufactures table lamps and is considering raising the price by $15 a unit for the coming year. With a $15 price increase, demand is expected to fall by 2500 units. Demand Selling price Variable costs per unit Current Projected 20 000 units 17 500 units $150 $165 $100 $100 Would you recommend the $15 price increase? Select one: a. No, because the selling price increases. b. Yes, because contribution margin per unit decreases. c. Yes, because operating profit increases. d. No, because demand decreased. LeBlanc Lighting manufactures table lamps and is considering raising the price by $15 a unit for the coming year. With a $15 price increase, demand is expected to fall by 2500 units. Demand Selling price Variable costs per unit Current Projected 20 000 units 17 500 units $150 $165 $100 $100 Would you recommend the $15 price increase? Select one: a. No, because the selling price increases. b. Yes, because contribution margin per unit decreases. c. Yes, because operating profit increases. d. No, because demand decreased.