Acri Corporation manufactures numerous products,one of which is called Omicron09.The company has provided the following data about this product:
Assume that the total traceable fixed expense does not change.If Acri decreases the price of Omicron09 to $71.76,what percentage change in unit sales would provide the same net operating income as is currently being earned at a price of $78.00? (Your answer should be rounded to the nearest 0.1%.)
A) 27.4%
B) 9.0%
C) -20.0%
D) -14.5%

Question

Acri Corporation manufactures numerous products,one of which is called Omicron09.The company has provided the following data about this product:
 Assume that the total traceable fixed expense does not change.If Acri decreases the price of Omicron09 to $71.76,what percentage change in unit sales would provide the same net operating income as is currently being earned at a price of $78.00? (Your answer should be rounded to the nearest 0.1%.)
A) 27.4% 
B) 9.0% 
C) -20.0% 
D) -14.5%

Quizplus · Accepted Answer

Profit = (P - V) × Q - Fixed expenses
$420,000 = ($71.76 per unit - $49.00 per unit) × Q - $2,480,000
$2,900,000 = ($71.76 per unit - $49.00 per unit) × Q
$2,900,000 = ($22.76 per unit) × Q
Q = $2,900,000 ÷ $22.76 per unit = 127,417 units (rounded up)
Percentage change in unit sales = (127,417 units − 100,000 units) ÷ 100,000 units = 27.4% (rounded)

Acri Corporation Manufactures Numerous Products,one of Which Is Called Omicron09