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QUESTION 9 1. Arma Ltd manufactures notebooks and is considering increasing the price by 20p per unit for the coming month. This is expected to

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QUESTION 9 1. Arma Ltd manufactures notebooks and is considering increasing the price by 20p per unit for the coming month. This is expected to lead to a fall in demand by 2,000 units. Currently Projected Demand 30,000 units 28,000 units Selling price 1.8 2- Cost per unit 1.1 1.1 If Arma implemented the price increase, operating profit is expected to (2 marks):- a.None of the above- b. decrease by 4,200 c. increase by 4,200 d. increase by 2,000 2 points - QUESTION 10- 6. # 26 414517 DE (1) B

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