Multiple Choice
Starowicz Corporation manufactures numerous products,one of which is called Beta10.The company has provided the following data about this product: Management is considering decreasing the price of Beta10 by 7%,from $12.00 to $11.16.The company's marketing managers estimate that this price reduction would increase unit sales by 15%,from 120,000 units to 138,000 units.Assuming that the total traceable fixed expense does not change,what net operating income will product Beta10 earn at a price of $11.16 if this sales forecast is correct?
A) -$40,800
B) $16,080
C) $379,200
D) $436,080
Correct Answer:

Verified
Correct Answer:
Verified
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