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LeBlanc Lighting manufactures table lamps and is considering raising the price by $15 a unit for the coming year. With a $15 price increase,
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.
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