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Cabebe Corporation Manufactures Numerous Products,one of Which Is Called Omicron55

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Cabebe Corporation manufactures numerous products,one of which is called Omicron55.The company has provided the following data about this product:
Cabebe Corporation manufactures numerous products,one of which is called Omicron55.The company has provided the following data about this product:    Required: a.Management is considering decreasing the price of Omicron55 by 4%,from $54.00 to $51.84.The company's marketing managers estimate that this price reduction would increase unit sales by 10%,from 140,000 units to 154,000 units.Assuming that the total traceable fixed expense does not change,what net operating income will Omicron55 earn at a price of $51.84 if this sales forecast is correct? b.Assuming that the total traceable fixed expense does not change,if Cabebe decreases the price of Omicron55 to $51.84,what percentage change in unit sales would provide the same net operating income that it currently earns at a price of $54.00? (Round your answer to the nearest one-tenth of a percent.) Required:
a.Management is considering decreasing the price of Omicron55 by 4%,from $54.00 to $51.84.The company's marketing managers estimate that this price reduction would increase unit sales by 10%,from 140,000 units to 154,000 units.Assuming that the total traceable fixed expense does not change,what net operating income will Omicron55 earn at a price of $51.84 if this sales forecast is correct?
b.Assuming that the total traceable fixed expense does not change,if Cabebe decreases the price of Omicron55 to $51.84,what percentage change in unit sales would provide the same net operating income that it currently earns at a price of $54.00? (Round your answer to the nearest one-tenth of a percent.)


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Graphics

Visual elements such as charts, diagrams, drawings, and photographs, used to supplement or illustrate textual information.

Other Cultures

Refers to the customs, norms, practices, and social behaviors of societies or groups distinct from one's own.

Tailor

A person who makes, repairs, or alters clothing professionally, especially suits and men's clothing.

Audience's Needs

The requirements or expectations of the target group to which information, products, or services are directed.

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