Carrolton, Inc

question 161

Essay

Carrolton, Inc. currently sells widgets for $80 per unit. The variable cost is $30 per unit, and total fixed costs equal $240,000 per year. Sales are currently 20,000 units annually.
?The company is considering a 20% drop in selling price that it believes will raise units sold by 20%. Assuming all costs stay the same, what is the impact on income if this change is made?

---

Definitions:

Bahrain

A small island nation in the Persian Gulf, known for its financial sector, oil production, and as a regional hub for trade and culture.

Saudi Arabia

A country located on the Arabian Peninsula, known for its vast oil reserves and as the birthplace of Islam.

Occupy Movement

The Occupy Movement was an international protest movement against social and economic inequality, primarily known for its initial Occupy Wall Street demonstration in New York City in 2011.

Grassroots Protest

A movement or campaign that originates from the community level or from the bottom-up, often involving widespread public participation and activism.