Twisdale Corporation Manufactures Numerous Products, One of Which Is Called

Multiple Choice

Twisdale Corporation manufactures numerous products, one of which is called Omicron-52. The company has provided the following data about this product: Management is considering decreasing the price of Omicron-52 by 4%, from $42.00 to $40.32. The company's marketing managers estimate that this price reduction would increase unit sales by 5%, from 160,000 units to 168,000 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Omicron 52 earn at a price of $40.32 if this sales forecast is correct?

A) $2,131,200
B) $61,200
C) $167,760
D) $2,237,760