Kinsley Corporation Manufactures Numerous Products, One of Which Is Called

Multiple Choice

Kinsley Corporation manufactures numerous products, one of which is called Kappa03. The company has provided the following data about this product:

-Management is considering increasing the price of Kappa03 by 7%,from $36.00 to $38.52.The company's marketing managers estimate that this price hike would decrease unit sales by 10%,from 50,000 units to 45,000 units.Assuming that the total traceable fixed expense does not change,what net operating income will product Kappa03 earn at a price of $38.52 if this sales forecast is correct?

A) $626,000
B) $563,400
C) $156,000
D) $93,400