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Author Question: Flash City Inc. manufactures small flash drives and is considering raising the price by 75 cents a ... (Read 89 times)

joblessjake

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on: Mar 6, 2021
Flash City Inc. manufactures small flash drives and is considering raising the price by 75 cents a unit for the coming year. With a 75-cent price increase, demand is expected to fall by 7,000 units.

CurrentProjected
Demand78,000 units71,000 units
Selling price$9.00$9.75
Incremental cost per unit$6.80$6.80

Would you recommend the 75-cent price increase?
◦ No, because demand decreased.
◦ No, because the selling price increases.
◦ Yes, because contribution margin per unit increases.
◦ Yes, because operating profits increase.
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by joblessjake on Mar 6, 2021

atrochim

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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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joblessjake

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Reply 2 on: Mar 6, 2021
Gracias!

Chelseyj.hasty

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

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