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Thad is worried about the selling price. Rumors are circulating that other retro brands of cycles may be revived. If so, the selling price for
Thad is worried about the selling price. Rumors are circulating that other retro brands of cycles may be revived. If so, the selling price for the Western Hombre would have to be reduced to $12,500 to compete effectively. In that event, Thad would also reduce fixed expenses to $1,311,000 by reducing advertising expenses, but he still hopes to sell 600 units per year. d. What would the net operating income be in this situation? (Negative amount should be indicated by a minus sign.) Answer is complete but not entirely correct. Net operating income (loss) $ 6,189.000 Thad is worried about the selling price. Rumors are circulating that other retro brands of cycles may be revived. If so, the selling price for the Western Hombre would have to be reduced to $12,500 to compete effectively. In that event, Thad would also reduce fixed expenses to $1,311,000 by reducing advertising expenses, but he still hopes to sell 600 units per year. d. What would the net operating income be in this situation? (Negative amount should be indicated by a minus sign.) Answer is complete but not entirely correct. Net operating income (loss) $ 6,189.000
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