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Woodridge Corporation manufactures numerous products, one of which is called Alpha-32. The company has provided the following data about this product: Unit sales (a) 88,000
Woodridge Corporation manufactures numerous products, one of which is called Alpha-32. The company has provided the following data about this product: Unit sales (a) 88,000 Selling price per unit $ 85.00 Variable cost per unit $ 68.00 Traceable fixed expense $ 1,477,000 Management is considering increasing the price of Alpha-32 by 8%, from $85.00 to $91.80. The company's marketing managers estimate that this price hike would decrease unit sales by 8%, from 88,000 units to 80.960 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Alpha-32 earn at a price of $91.80 if this sales forecast is correct? Multiple Choice $449,848 $2,094,400 $1,926,848 $617,400
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