Ohanlon Corporation manufactures numerous products, one of which is called Delta-27. The company has provided the following data about this product:
Required:a. Management is considering increasing the price of Delta-27 by 5%, from $62.00 to $65.10. The company's marketing managers estimate that this price hike would decrease unit sales by 10%, from 210,000 units to 189,000 units. Assuming that the total traceable fixed expense does not change, what net operating income will Delta-27 earn at a price of $65.10 if this sales forecast is correct?b. Assuming that the total traceable fixed expense does not change, if Ohanlon increases the price of Delta-27 to $65.10, what percentage change in unit sales would provide the same net operating income that it currently earns at a price of $62.00? (Round your "Percentage" answer to 1 decimal place.)

Question

Ohanlon Corporation manufactures numerous products, one of which is called Delta-27. The company has provided the following data about this product:
  Required:a. Management is considering increasing the price of Delta-27 by 5%, from $62.00 to $65.10. The company's marketing managers estimate that this price hike would decrease unit sales by 10%, from 210,000 units to 189,000 units. Assuming that the total traceable fixed expense does not change, what net operating income will Delta-27 earn at a price of $65.10 if this sales forecast is correct?b. Assuming that the total traceable fixed expense does not change, if Ohanlon increases the price of Delta-27 to $65.10, what percentage change in unit sales would provide the same net operating income that it currently earns at a price of $62.00? (Round your "Percentage" answer to 1 decimal place.)

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The Answer of Ohanlon Corporation manufactures numerous products, one of which is called Delta-27. The company has provided the following data about this product:
  Required:a. Management is considering increasing the price of Delta-27 by 5%, from $62.00 to $65.10. The company's marketing managers estimate that this price hike would decrease unit sales by 10%, from 210,000 units to 189,000 units. Assuming that the total traceable fixed expense does not change, what net operating income will Delta-27 earn at a price of $65.10 if this sales forecast is correct?b. Assuming that the total traceable fixed expense does not change, if Ohanlon increases the price of Delta-27 to $65.10, what percentage change in unit sales would provide the same net operating income that it currently earns at a price of $62.00? (Round your "Percentage" answer to 1 decimal place.)

Ohanlon Corporation Manufactures Numerous Products, One of Which Is Called