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Business, 27.08.2020 05:01 starburst2005

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) 75,000 Selling price per unit $ 76.00 Variable cost per unit $ 61.00 Traceable fixed expense $ 1,325,000 Management is considering increasing the price of Alpha-32 by 7%, from $76.00 to $81.32. The company’s marketing managers estimate that this price hike would decrease unit sales by 6%, from 75,000 units to 70,500 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Alpha-32 earn at a price of $81.32 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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