Pascal Corporation manufactures numerous products, one of which is called Gamma-66. 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) × (b)$1,700,000 Traceable fixed expense 1,570,000 Net operating income$130,000 ?Assume that the total traceable fixed expense does not change. If Pascal decreases the price of Gamma-66 to $48.96, what percentage change in unit sales would provide the same net operating income as is currently being earned at a price of $51.00? (Your answer should be rounded to the nearest 0.1%.)
A. 4.9%
B. 13.6%
C. (10.0)%
D. (7.6)%
Answer: B
Business
You might also like to view...
The VALS segmentation system has evolved into an eight-part typology. List the categories of the
eight-part typology. What will be an ideal response?
Business
What are the two types of interactive activities that an organization can use to improve upward communications? Provide an example of each type.
What will be an ideal response?
Business
Competitive advantage is a company's ability to perform in one or more ways that competitors cannot or will not match
Indicate whether the statement is true or false
Business
Which of the following is not a characteristic of a follower?
a. granting autonomy b. assuming responsibility c. not assuming responsibility d. volunteering input
Business