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

question 14

Essay

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.)

---

Definitions:

Nursing Diagnosis

A clinical judgment about individual, family, or community experiences/responses to actual or potential health problems/life processes, providing the basis for selecting nursing interventions.

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, a critical indicator of cardiovascular health.

Care Plan

A customized, comprehensive plan outlining a patient's healthcare goals, the strategies to achieve them, and the roles of various healthcare providers.

Expected Outcome

A predicted result or effect that is aimed for after a treatment, procedure, or program.