Pascal Corporation manufactures numerous products, one of which is called Gamma66. The company has provided the following data about this product: Unit sales (a) 100,000 Selling price per unit$51.00 Variable cost per unit 34.00 Contribution margin per unit (b)$17.00 Total contribution margin (a) x (b)$1,700,000 Traceable fixed expense 1,570,000 Net operating income$130,000 Management is considering decreasing the price of Gamma66 by 4%, from $51.00 to $48.96. The company's marketing managers estimate that this price reduction would increase unit sales by 10%, from 100,000 units to 110,000 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Gamma66 earn at a price of $48.96 if this sales forecast is correct?
A. $75,600
B. $(74,000)
C. $1,496,000
D. $1,645,600
Answer: A
You might also like to view...
____ contributes to a successful service desk career.
A. Continuously leveraging your experiences B. Concentrating on individual goals first and service desk goals second C. Focusing on the present and not worrying about the future D. Being conservative and changing only when necessary
____________________ is the process of applying analytical tools to a company's financial statements to understand the company's financial health
Fill in the blank(s) with correct word
________ are established between entities in a well-structured database so that the desired information can be retrieved
A) Entities B) Relationships C) Lines D) Ties
List five typical causes of stress on the job.
What will be an ideal response?