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Th traceable fixed expense is 53,500,000. Maragernent is considering increasing the selling peice of M29 by 1005 , unit sales are estimated in deccease by
Th traceable fixed expense is 53,500,000. Maragernent is considering increasing the selling peice of M29 by 1005 , unit sales are estimated in deccease by zon, the to the increase in the selling price. Assume that the total traceable fiesed expense doen not change Requifed: a. Assume that the sales forecast is correct, What is the cureni net operating income? b. What net operating income will Mz9 earn if Fountain Corporation inereases the welling price by 10x? sold? d. Based on requirement (2), is it better for Fountain Corporation to keep the current seling price of 5%0 pet unit ov to inciease the sellivis price ty 1 one? Why
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