Unit sales (a) Selling price per unit Variable cost per unit Contribution margin per unit (b) Total contribution margin (a) x (b) Traceable fixed expense Net operating income 80,000 $40.00 20 $20.00 $1,600,000 650,000 $950,000 Required: A. Management is considering decreasing the selling price of P90 by 5%. The company's marketing managers estimate that this price reduction would increase unit sales by 10%. Assuming that the total traceable fixed expense does not change, what net operating income will P90 earn at a price of $38.00 if this sales forecast is correct? B. Assume that management is considering increasing the price of P90 by 10%, from $40.00 to $44.00. The company's sales team estimate that this price reduction would decrease in unit sales by 5%. Assuming that the total traceable fixed expense C. increased by 10% change, what net operating income will P90 earn, if this sales forecast is correct? From the above two cases (a) and (b) which one is most profitable? Find the differential net operating income? Question Completion Status: this product: Unit sales (a) Selling price per unit Variable cost per unit Contribution margin per unit (b) Total contribution margin (a) x (b) Traceable fixed expense Net operating income 80,000 $40.00 20 $20.00 $1,600,000 650,000 $950,000 Required: A. 8. C. Management is considering decreasing the selling price of P90 by 5%. The company's marketing managers estimate that this price reduction would increase unit sales by 10%. Assuming that the total traceable fixed expense does not change, what net operating income will P90 earn at a price of $38.00 if this sales forecast is correct? Assume that management is considering increasing the price of P90 by 10%, from $40.00 to $44.00. The company's sales team estimate that this price reduction would decrease in unit sales by 5%. Assuming that the total traceable fixed expense increased by 10% change, what net operating income will P90 earn, if this sales forecast is correct? From the above two cases (a) and (b) which one is most profitable? Find the differential net operating income? 9:17 PM