Question: fastt Th traceable fixed expense is $3,000,000. Management is considerine increasing the selling price of M29 by 5. Unit sales are estimated to decrease by

fastt

Th traceable fixed expense is $3,000,000. Management is considerine increasing the selling price of M29 by 5. Unit sales are estimated to decrease by 200 , thue to the increas the selling price. Assume that the total traceable fixed expense does not change Required: a. Assume that the sales forecsit is correct. What is the current net operating income? b. What net operating income will Mz9 earn if fountain Corporation incleases the selling price by 5 ? c. if fountain Corporation increases the selling price of M29 by 5%, and would He to earn the same net operating income, how many units of sales should be sold? d. Based on requirement (a), is it better for fountain Corporation to heep the current seiling price of 5100 per unit or to inereate the selling price by 5W ? Wiv

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