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Weitman Corporation Manufactures Numerous Products, One of Which Is Called

Question 96

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Weitman Corporation manufactures numerous products, one of which is called Epsilon50. The company has provided the following data about this product:
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
-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

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