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Author Question: Tony Manufacturing produces a single product that sells for $80. Variable costs per unit equal $50. ... (Read 85 times)

asd123

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Tony Manufacturing produces a single product that sells for $80. Variable costs per unit equal $50. The company expects total fixed costs to be $82,000 for the next month at the projected sales level of 2,800 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. Suppose that management believes that a 14% reduction in the selling price will result in a 14% increase in sales. If this proposed reduction in selling price is implemented ________.
◦ operating income will decrease by $23,990
◦ operating income will increase by $7,370
◦ operating income will decrease by $31,360
◦ operating income will increase by $23,990


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Marked as best answer by asd123 on Mar 6, 2021

tandmlomax84

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asd123

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review


billybob123

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Reply 3 on: Yesterday
:D TYSM

 

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