Starowicz Corporation manufactures numerous products, one of which is called Beta10. The company has provided the following data about this product: Unit sales (a) 120,000 Selling price per unit$12.00 Variable cost per unit 8.00 Contribution margin per unit (b)$4.00 Total contribution margin (a) × (b)$480,000 Traceable fixed expense 420,000 Net operating income$60,000 ?Management is considering decreasing the price of Beta10 by 7%, from $12.00 to $11.16. The company's marketing managers estimate that this price reduction would increase unit sales by 15%, from 120,000 units to 138,000 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Beta-10 earn at a price of $11.16 if this sales forecast is correct?
A. $379,200
B. $436,080
C. $16,080
D. ?$40,800
Answer: C
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Indicate whether the statement is true or false
Which of the following departments is most likely to be familiar with knowledge of waste
products, the legislation governing their handling and other uses in the company? A) Direct Customer Sales B) Purchasing C) Maintenance D) Human Resources E) Engineering
UCC Article 2 has been adopted:
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