Boggess Corporation manufactures numerous products, one of which is called Alpha41. The company has provided the following data about this product: Unit sales (a) 120,000 Selling price per unit$86.00 Variable cost per unit 57.00 Contribution margin per unit (b)$29.00 Total contribution margin (a) × (b)$3,480,000 Traceable fixed expense 3,150,000 Net operating income$330,000 ?Management is considering increasing the price of Alpha41 by 10%, from $86.00 to $94.60. The company's marketing managers estimate that this price hike would decrease unit sales by 20%, from 120,000 units to 96,000 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Alpha41 earn at a price of $94.60 if this sales forecast is correct?
A. $1,362,00
B. $4,512,000
C. $459,600
D. $3,609,600
Answer: C
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A. 79.5%. B. 45.2%. C. 22.0%. D. 11.65%. E. 12.3%.
XLT Corp. is pursuing a cooperative strategy as a way to drive growth. XLT might be considering a(n)
A. joint venture. B. trend analysis. C. merger. D. acquisition.
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What will be an ideal response?
The critical variable in the determination of the success of the active portfolio is
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