Woodridge Corporation Manufactures Numerous Products, One of Which Is Called

Multiple Choice

Woodridge Corporation manufactures numerous products, one of which is called Alpha-32. The company has provided the following data about this product: Management is considering increasing the price of Alpha-32 by 5%, from $73.00 to $76.65. The company's marketing managers estimate that this price hike would decrease unit sales by 5%, from 78,000 units to 74,100 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Alpha-32 earn at a price of $76.65 if this sales forecast is correct?

A) $195,700
B) $1,454,700
C) $122,965
D) $1,381,965