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Paluso Corporation Manufactures Numerous Products, One of Which Is Called

question 58

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Paluso Corporation manufactures numerous products, one of which is called Alpha42. The company has provided the following data about this product: Paluso Corporation manufactures numerous products, one of which is called Alpha42. The company has provided the following data about this product:   Management is considering increasing the price of Alpha42 by 4%, from $18.00 to $18.72. The company's marketing managers estimate that this price hike would decrease unit sales by 10%, from 180,000 units to 162,000 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Alpha-42 earn at a price of $18.72 if this sales forecast is correct? A)  $764,640 B)  $209,600 C)  $849,600 D)  $124,640 Management is considering increasing the price of Alpha42 by 4%, from $18.00 to $18.72. The company's marketing managers estimate that this price hike would decrease unit sales by 10%, from 180,000 units to 162,000 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Alpha-42 earn at a price of $18.72 if this sales forecast is correct?

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