Ohanlon Corporation Manufactures Numerous Products, One of Which Is Called

question 2

Essay

Ohanlon Corporation manufactures numerous products, one of which is called Delta-27. The company has provided the following data about this product:
Required:a. Management is considering increasing the price of Delta-27 by 5%, from $62.00 to $65.10. The company's marketing managers estimate that this price hike would decrease unit sales by 10%, from 210,000 units to 189,000 units. Assuming that the total traceable fixed expense does not change, what net operating income will Delta-27 earn at a price of $65.10 if this sales forecast is correct?b. Assuming that the total traceable fixed expense does not change, if Ohanlon increases the price of Delta-27 to $65.10, what percentage change in unit sales would provide the same net operating income that it currently earns at a price of $62.00? (Round your "Percentage" answer to 1 decimal place.)

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Definitions:

Congruent Statement

A congruent statement is an expression or communication that is consistent with one's true feelings, thoughts, and behaviors, promoting authenticity.

Empathic Response

A reaction that demonstrates understanding and sharing of another's emotional experience.

Validation

The act of recognizing and affirming the feelings, thoughts, or experiences of oneself or others.

Empathy

The ability to understand and share the feelings of another, crucial in therapeutic and personal relationships for effective communication.