Question: A company sells a single product with a contribution margin of $45 per unit. The company currently sells 1600 units per year and management believes

A company sells a single product with a contribution margin of $45 per unit. The company currently sells 1600 units per year and management believes that if they reduce the sales price by $1 per unit, sales will increase by 13%. How much will annual profit change if they take this action?

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