Multiple Choice
Boggess Corporation manufactures numerous products, one of which is called Alpha41. The company has provided the following data about this product:
-Management is considering increasing the price of Alpha41 by 10%,from $86.00 to $94.60.The company's marketing managers estimate that this price hike would decrease unit sales by 20%,from 120,000 units to 96,000 units.Assuming that the total traceable fixed expense does not change,what net operating income will product Alpha41 earn at a price of $94.60 if this sales forecast is correct?
A) $459,600
B) $4,512,000
C) $3,609,600
D) $1,362,000
Correct Answer:

Verified
Correct Answer:
Verified
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