Question: pleasee solvee fastttt Th traceable fixed expense is $3,500,000. Management is considering increasing the selling price of M29 by 10%. Unit sales are estimated to

pleasee solvee fastttt

Th traceable fixed expense is $3,500,000. Management is considering increasing the selling price of M29 by 10%. Unit sales are estimated to decrease by 20%, due to the increase in the selling price. Assume that the total traceablo fixed expense does not change. Required: a. Assume that the sales forecast is correct. What is the current net operating income? b. What net operating income will M29 earn if Fountain Corporation increases the selling price by 10x? c. If Fountain Corporation increases the selling price of M29 by 1006, and would like to earn the sarne net operating income, how many units of sales should be sold? d. Based on requirement (a), is it better for Fountain Corporation to keep the current selling price of $90 per unit or to increase the selling price by 10\%? Why

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