Multiple Choice
Chruch Corporation manufactures numerous products, one of which is called Tau42. The company has provided the following data about this product:
-Management is considering decreasing the price of Tau42 by 6%,from $64.00 to $60.16.The company's marketing managers estimate that this price reduction would increase unit sales by 10%,from 60,000 units to 66,000 units.Assuming that the total traceable fixed expense does not change,what net operating income will product Tau42 earn at a price of $60.16 if this sales forecast is correct?
A) -$53,440
B) $969,600
C) -$150,400
D) $1,066,560
Correct Answer:

Verified
Correct Answer:
Verified
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