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Author Question: Troy City Inc., manufactures a product and is considering raising the price by $20 a unit for the ... (Read 29 times)

Kthamas

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on: Mar 6, 2021
Troy City Inc., manufactures a product and is considering raising the price by $20 a unit for the coming year. With a $20 price increase, demand is expected to fall by 2500 units.

CurrentlyProjected
Demand21,000 units18,500 units
Selling price$170$190
Variable costs per unit$110$110

Would you recommend the $20 price increase?
◦ No, because demand decreased.
◦ No, because the contribution margin decreases.
◦ Yes, because inventory turnover increases.
◦ Yes, because operating income increases.
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by Kthamas on Mar 6, 2021

amanda_14

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Kthamas

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Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it

yeungji

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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