Woodridge Corporation Manufactures Numerous Products, One of Which Is Called

question 75

Multiple Choice

Woodridge Corporation manufactures numerous products, one of which is called Alpha32. The company has provided the following data about this product: Management is considering increasing the price of Alpha32 by 4%, from $99.00 to $102.96. The company's marketing managers estimate that this price hike would decrease unit sales by 5%, from 90,000 units to 85,500 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Alpha32 earn at a price of $102.96 if this sales forecast is correct?

• A) $556,400
• B) $2,246,400
• C) $444,080
• D) $2,134,080

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Definitions:

Tractors

Heavy-duty vehicles designed primarily for off-road use in agriculture and construction to pull or power various equipment.

Minimize

The process of reducing or bringing something down to the smallest possible amount or degree.

Distances

The amount of space between two points, which can be measured in various units such as kilometers, miles, meters, or feet, important for logistics and planning.

Minimum Cost

The lowest possible expense incurred in the production or acquisition of goods or services without compromising quality.