Boggess Corporation Manufactures Numerous Products, One of Which Is Called

Multiple Choice

Boggess Corporation manufactures numerous products, one of which is called Alpha41. The company has provided the following data about this product: Management is considering increasing the price of Alpha41 by 10%, from $86.00 to $94.60. The company's marketing managers estimate that this price hike would decrease unit sales by 20%, from 120,000 units to 96,000 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Alpha41 earn at a price of $94.60 if this sales forecast is correct?

A) $459,600
B) $4,512,000
C) $3,609,600
D) $1,362,00