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Twisdale Corporation Manufactures Numerous Products, One of Which Is Called

Question 108

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Twisdale Corporation manufactures numerous products, one of which is called Omicron52. The company has provided the following data about this product:
Twisdale Corporation manufactures numerous products, one of which is called Omicron52. The company has provided the following data about this product:    -Management is considering decreasing the price of Omicron52 by 4%,from $42.00 to $40.32.The company's marketing managers estimate that this price reduction would increase unit sales by 5%,from 160,000 units to 168,000 units.Assuming that the total traceable fixed expense does not change,what net operating income will product Omicron52 earn at a price of $40.32 if this sales forecast is correct? A)  $2,131,200 B)  $61,200 C)  $167,760 D)  $2,237,760
-Management is considering decreasing the price of Omicron52 by 4%,from $42.00 to $40.32.The company's marketing managers estimate that this price reduction would increase unit sales by 5%,from 160,000 units to 168,000 units.Assuming that the total traceable fixed expense does not change,what net operating income will product Omicron52 earn at a price of $40.32 if this sales forecast is correct?


A) $2,131,200
B) $61,200
C) $167,760
D) $2,237,760

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