Kinsley Corporation manufactures numerous products, one of which is called Kappa03. The company has provided the following data about this product: Assume that the total traceable fixed expense does not change. If Kinsley increases the price of Kappa03 to $38.52, what percentage change in unit sales would provide the same net operating income as is currently being earned at a price of $36.00? (Your answer should be rounded to the nearest 0.1%.)
A) −6.0%
B) −24.9%
C) −10.0%
D) −20.1%

Question

Kinsley Corporation manufactures numerous products, one of which is called Kappa03. The company has provided the following data about this product:  Assume that the total traceable fixed expense does not change. If Kinsley increases the price of Kappa03 to $38.52, what percentage change in unit sales would provide the same net operating income as is currently being earned at a price of $36.00? (Your answer should be rounded to the nearest 0.1%.)
A) −6.0% 
B) −24.9% 
C) −10.0% 
D) −20.1%

Quizplus · Accepted Answer

The Answer of Kinsley Corporation manufactures numerous products, one of which is called Kappa03. The company has provided the following data about this product:  Assume that the total traceable fixed expense does not change. If Kinsley increases the price of Kappa03 to $38.52, what percentage change in unit sales would provide the same net operating income as is currently being earned at a price of $36.00? (Your answer should be rounded to the nearest 0.1%.)
A) −6.0% 
B) −24.9% 
C) −10.0% 
D) −20.1%

Kinsley Corporation Manufactures Numerous Products, One of Which Is Called