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Riven Corporation has a single product whose selling price is $14. At an expected sales level of $1,470,000, the company's variable expenses are $630,000 and
Riven Corporation has a single product whose selling price is $14. At an expected sales level of $1,470,000, the company's variable expenses are $630,000 and its fixed expenses are $285,000. The marketing manager has recommended that the selling price be increased by 30%, with an expected decrease of only 10% in unit sales. What would be the company's net operating income if the marketing manager's recommendation is adopted? |
$1,434,900 | |
$867,900 | |
$555,000 | |
$804,900 |
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