Hammen Corporation manufactures numerous products, one of which is called Omicron43. The company has provided the following data about this product: Unit sales (a) 150,000 Selling price per unit$18.00 Variable cost per unit$10.00 Traceable fixed expense$1,040,000 ?Assume that the total traceable fixed expense does not change. If Hammen decreases the price of Omicron43 to $16.20, what percentage change in unit sales would provide the same net operating income as is currently being earned at a price of $18.00? (Your answer should be rounded to the nearest 0.1%.)
A. ?20.0%
B. 29.0%
C. ?13.3%
D. 11.8%
Answer: B
Business
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