Chruch Corporation Manufactures Numerous Products, One of Which Is Called

Multiple Choice

Chruch Corporation manufactures numerous products, one of which is called Tau-42. The company has provided the following data about this product: Management is considering decreasing the price of Tau-42 by 6%, from $64.00 to $60.16. The company's marketing managers estimate that this price reduction would increase unit sales by 10%, from 60,000 units to 66,000 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Tau-42 earn at a price of $60.16 if this sales forecast is correct?

A) $(53,440)
B) $969,600
C) $(150,400)
D) $1,066,560