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Square Inc would like to increase operating income for the single product the company sells. The marketing manager believes that a 10% increase in the
Square Inc would like to increase operating income for the single product the company sells. The marketing manager believes that a 10% increase in the selling price will lead to a 20% reduction in unit sales. Each unit currently sells for $15. Total variable expenses of $180,000 and fixed expenses of $90,000 led to an operating income of $30,000. If Square Inc increases the selling price by 10% by how much will operating income change? (3 Marks)
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