Paluso Corporation manufactures numerous products, one of which is called Alpha42. The company has provided the following data about this product: Unit sales (a) 180,000 Selling price per unit$18.00 Variable cost per unit 14.00 Contribution margin per unit (b)$4.00 Total contribution margin (a) × (b)$720,000 Traceable fixed expense 640,000 Net operating income$80,000 ?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 Alpha-42 earn at a price of $18.72 if this sales forecast is correct?
A. $849,600
B. $209,600
C. $764,640
D. $124,640
Answer: D
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Does a qualified opinion on management's assessment of internal controls over the financial reporting system necessitate a qualified opinion on the financial statements? Explain
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