Business, 05.05.2020 03:59 JellalFernandes

Woodridge Corporation manufactures numerous products, one of which is called Alpha-32. The company has provided the following data about this product: Unit sales (a) 100,000 Selling price per unit $ 96.00 Variable cost per unit $ 77.00 Traceable fixed expense $ 1,673,000 Management is considering increasing the price of Alpha-32 by 6%, from $96.00 to $101.76. The company’s marketing managers estimate that this price hike would decrease unit sales by 6%, from 100,000 units to 94,000 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Alpha-32 earn at a price of $101.76 if this sales forecast is correct?

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Woodridge Corporation manufactures numerous products, one of which is called Alpha-32. The company h...

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