Cogdill Corporation manufactures numerous products, one of which is called Epsilon78. The company has provided the following data about this product: Assume that the total traceable fixed expense does not change. If Cogdill increases the price of Epsilon78 to $19.76, what percentage change in unit sales would provide the same net operating income as is currently being earned at a price of $19.00? (Your answer should be rounded to the nearest 0.1%.)
A) −14.7%
B) −28.3%
C) −5.0%
D) −16.0%

Question

Cogdill Corporation manufactures numerous products, one of which is called Epsilon78. The company has provided the following data about this product:  Assume that the total traceable fixed expense does not change. If Cogdill increases the price of Epsilon78 to $19.76, what percentage change in unit sales would provide the same net operating income as is currently being earned at a price of $19.00? (Your answer should be rounded to the nearest 0.1%.)
A) −14.7% 
B) −28.3% 
C) −5.0% 
D) −16.0%

Quizplus · Accepted Answer

The Answer of Cogdill Corporation manufactures numerous products, one of which is called Epsilon78. The company has provided the following data about this product:  Assume that the total traceable fixed expense does not change. If Cogdill increases the price of Epsilon78 to $19.76, what percentage change in unit sales would provide the same net operating income as is currently being earned at a price of $19.00? (Your answer should be rounded to the nearest 0.1%.)
A) −14.7% 
B) −28.3% 
C) −5.0% 
D) −16.0%

Cogdill Corporation Manufactures Numerous Products, One of Which Is Called