Multiple Choice
Woodridge Corporation manufactures numerous products,one of which is called Alpha32.The company has provided the following data about this product: Management is considering increasing the price of Alpha32 by 4%,from $99.00 to $102.96.The company's marketing managers estimate that this price hike would decrease unit sales by 5%,from 90,000 units to 85,500 units.Assuming that the total traceable fixed expense does not change,what net operating income will product Alpha32 earn at a price of $102.96 if this sales forecast is correct?
A) $556,400
B) $2,246,400
C) $444,080
D) $2,134,080
Correct Answer:

Verified
Correct Answer:
Verified
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