Multiple Choice
Pascal Corporation manufactures numerous products, one of which is called Gamma66. The company has provided the following data about this product:
-Management is considering decreasing the price of Gamma66 by 4%,from $51.00 to $48.96.The company's marketing managers estimate that this price reduction would increase unit sales by 10%,from 100,000 units to 110,000 units.Assuming that the total traceable fixed expense does not change,what net operating income will product Gamma66 earn at a price of $48.96 if this sales forecast is correct?
A) -$74,000
B) $1,645,600
C) $75,600
D) $1,496,000
Correct Answer:

Verified
Correct Answer:
Verified
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