Multiple Choice
Weitman Corporation manufactures numerous products, one of which is called Epsilon50. The company has provided the following data about this product:
-Management is considering increasing the price of Epsilon50 by 9%,from $29.00 to $31.61.The company's marketing managers estimate that this price hike would decrease unit sales by 15%,from 130,000 units to 110,500 units.Assuming that the total traceable fixed expense does not change,what net operating income will product Epsilon50 earn at a price of $31.61 if this sales forecast is correct?
A) $223,905
B) $1,769,300
C) $489,300
D) $1,503,905
Correct Answer:

Verified
Correct Answer:
Verified
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