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

 

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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) Selling price per unit Variable cost per unit Traceable fixed expense 97,000 $75.00 $ 60.00 $ 1,304,000 Management is considering increasing the price of Alpha-32 by 6%, from $75.00 to $79.50. The company's marketing managers estimate that this price hike would decrease unit sales by 5%, from 97,000 units to 92.150 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Alpha-32 earn at a price of $79.50 if this sales forecast is correct? Multiple Choice $1796,925 $1,891,500 $587.500 $492.925 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) Selling price per unit Variable cost per unit Traceable fixed expense 97,000 $75.00 $ 60.00 $ 1,304,000 Management is considering increasing the price of Alpha-32 by 6%, from $75.00 to $79.50. The company's marketing managers estimate that this price hike would decrease unit sales by 5%, from 97,000 units to 92.150 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Alpha-32 earn at a price of $79.50 if this sales forecast is correct? Multiple Choice $1796,925 $1,891,500 $587.500 $492.925 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) Selling price per unit Variable cost per unit Traceable fixed expense 97,000 $75.00 $ 60.00 $ 1,304,000 Management is considering increasing the price of Alpha-32 by 6%, from $75.00 to $79.50. The company's marketing managers estimate that this price hike would decrease unit sales by 5%, from 97,000 units to 92.150 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Alpha-32 earn at a price of $79.50 if this sales forecast is correct? Multiple Choice $1796,925 $1,891,500 $587.500 $492.925 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) Selling price per unit Variable cost per unit Traceable fixed expense 97,000 $75.00 $ 60.00 $ 1,304,000 Management is considering increasing the price of Alpha-32 by 6%, from $75.00 to $79.50. The company's marketing managers estimate that this price hike would decrease unit sales by 5%, from 97,000 units to 92.150 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Alpha-32 earn at a price of $79.50 if this sales forecast is correct? Multiple Choice $1796,925 $1,891,500 $587.500 $492.925

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