Multiple Choice
Troy City Inc. ,manufactures a product and is considering raising the price by $20 a unit for the coming year.With a $20 price increase,demand is expected to fall by 2500 units.
Would you recommend the $20 price increase?
A) No,because demand decreased.
B) No,because the contribution margin decreases.
C) Yes,because inventory turnover increases.
D) Yes,because operating income increases.
Correct Answer:
Verified
Correct Answer:
Verified
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