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Mixiao, Inc. currently sells its latest 6G phone, the MX600, for $2099. It plans to lower the price to $1999 next year. Its cost of
Mixiao, Inc. currently sells its latest 6G phone, the MX600, for $2099. It plans to lower the price to $1999 next year. Its cost of goods sold for the MX600 is $1702 per unit, and this years sales are expected to be 25,100 units. Suppose that if Mixiao drops the price to $1999 immediately, it can increase this years sales to 33,930 units. What would be the incremental impact on this years EBIT of such a price drop?
Group of answer choices
$112,510
-$72,878
None of these alternatives
$1,803,510
$1,098,810
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