Pascal Corporation Manufactures Numerous Products, One of Which Is Called

question 90

Multiple Choice

Pascal Corporation manufactures numerous products, one of which is called Gamma66. The company has provided the following data about this product:

-Management is considering decreasing the price of Gamma66 by 4%,from $51.00 to $48.96.The company's marketing managers estimate that this price reduction would increase unit sales by 10%,from 100,000 units to 110,000 units.Assuming that the total traceable fixed expense does not change,what net operating income will product Gamma66 earn at a price of $48.96 if this sales forecast is correct?

• A) -$74,000
• B) $1,645,600
• C) $75,600
• D) $1,496,000

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Definitions:

Proclamation of 1763

An edict issued by King George III of Britain, prohibiting settlers from advancing westward beyond the Appalachian Mountains to ease tensions with Native Americans.

Sons of Liberty

A group of patriots formed in the North American British colonies to protest against British taxation and laws, known for their role in the American Revolution.

Tea Act

A 1773 British law that granted the East India Company the right to sell tea to the American colonies free of the taxes that colonial tea sellers had to pay, leading to the Boston Tea Party.

Great Britain's Right

The inherent or legal privileges, freedoms, or authority that Great Britain claims or exercises, often in a historical or legal context.