Paluso Corporation Manufactures Numerous Products, One of Which Is Called

Multiple Choice

Paluso Corporation manufactures numerous products, one of which is called Alpha42. The company has provided the following data about this product: Management is considering increasing the price of Alpha42 by 4%, from $18.00 to $18.72. The company's marketing managers estimate that this price hike would decrease unit sales by 10%, from 180,000 units to 162,000 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Alpha-42 earn at a price of $18.72 if this sales forecast is correct?

A) $764,640
B) $209,600
C) $849,600
D) $124,640