Multiple Choice
Classic Loungers is in the process of preparing a production cost budget for August.Actual costs in July for 200 chaise lounge chairs were: Each chair was sold for $140 in July.Management estimates that sales will increase to 230 chairs during August if the company lowers the selling price to $130 per chair.Materials and labor are the only variable costs.How much is the incremental revenue associated with the price reduction?
A) $200
B) $2,100
C) $3,750
D) $1,900
Correct Answer:

Verified
Correct Answer:
Verified
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