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Roland, Inc. presently sells 4 8 , 0 0 0 units a month for 5 1 8 each, has variable costs of 5 1 3

Roland, Inc. presently sells 48,000 units a month for 518 each, has variable costs of 513 per unit, and fixed costs of $100,000. Roland is considering increasing the price of its units to $20 per unit. This will not affect costs, but demand is expected to drop 10%.
Should Roland increase the price of its product?
A) No, profit will decrease $140,000.
C) Yes; profit will increase $62,400.
B) Yes, profit will increase $140,000.
D) No, profit will decrease $62,400.

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