Paluso Corporation manufactures numerous products,one of which is called Alpha42.The company has provided the following data about this product: Management is considering increasing the price of Alpha42 by 4%,from $18.00 to $18.72.The company's marketing managers estimate that this price hike would decrease unit sales by 10%,from 180,000 units to 162,000 units.Assuming that the total traceable fixed expense does not change,what net operating income will product Alpha42 earn at a price of $18.72 if this sales forecast is correct?
A) $764,640
B) $209,600
C) $849,600
D) $124,640
Correct Answer:
Verified
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