Herrell Corporation Manufactures Numerous Products, One of Which Is Called

Multiple Choice

Herrell Corporation manufactures numerous products, one of which is called Delta11. The company has provided the following data about this product: Management is considering increasing the price of Delta11 by 5%, from $29.00 to $30.45. The company's marketing managers estimate that this price hike would decrease unit sales by 10%, from 110,000 units to 99,000 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Delta11 earn at a price of $30.45 if this sales forecast is correct?

A) $1,133,550
B) $123,550
C) $249,500
D) $1,259,500