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TB MC Qu. 12A-96 Chruch Corporation manufactures numerous ... Chruch Corporation manufactures numerous products, one of which is called Tau-42. The company has provided the

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TB MC Qu. 12A-96 Chruch Corporation manufactures numerous ... Chruch Corporation manufactures numerous products, one of which is called Tau-42. The company has provided the following data about this product: Unit sales (a) Selling price per unit Variable cost per unit Traceable fixed expense 63,000 $ 51.00 $ 34.00 $1,030,000 Management is considering decreasing the price of Tau-42 by 8%, from $51.00 to $46.92. The company's marketing managers estimate that this price reduction would increase unit sales by 10%, from 63,000 units to 69,300 units. Assuming that the total traceable fixed expense does not change, what net operating income (oss) will product Tau-42 earn at a price of $46.92 if this sales forecast is correct? Multiple Choice $895,356 $(134,644) $(81,396) O $813,960

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