Chruch Corporation Manufactures Numerous Products, One of Which Is Called

question 129

Multiple Choice

Chruch Corporation manufactures numerous products, one of which is called Tau42. The company has provided the following data about this product:

-Assume that the total traceable fixed expense does not change.If Chruch decreases the price of Tau42 to $60.16,what percentage change in unit sales would provide the same net operating income as is currently being earned at a price of $64.00? (Your answer should be rounded to the nearest 0.1%.)

• A) 15.5%
• B) 23.8%
• C) -6.7%
• D) -10.0%

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Definitions:

Chicago School

refers to a school of economic thought that promotes free-market principles and holds that economic freedom leads to economic development.

Traditional Antitrust

Laws and regulations designed to protect trade and commerce from unlawful restraints, monopolies, and unfair business practices.

Primary-Line Injury

Under the Robinson-Patman Act, an injury that occurs when preferential treatment is given to a competitor.

Antitrust Action

Legal proceedings or actions taken by government regulators or private parties to prevent or remedy anti-competitive practices, monopolies, or other violations of antitrust laws.