Herrell Corporation manufactures numerous products, one of which is called Delta-11. The company has provided the following data about this product: Unit sales (a) 110,000 Selling price per unit$29.00 Variable cost per unit 19.00 Contribution margin per unit (b)$10.00 Total contribution margin (a) × (b)$1,100,000 Traceable fixed expense 1,010,000 Net operating income$90,000 ?Assume that the total traceable fixed expense does not change. If Herrell increases the price of Delta-11 to $30.45, what percentage change in unit sales would provide the same net operating income as is currently being earned at a price of $29.00? (Your answer should be rounded to the nearest 0.1%.)
A. (19.8)%
B. (12.7)%
C. (10.0)%
D. (8.2)%
Answer: B
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