Business, 24.05.2020 01:01, jerikkaharris7057

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.

Current Projected

Demand 79,000 units 72,000 units

Selling price $8.50 $9.25

Incremental cost per unit $5.80 $5.80

If the price increase is implemented, operating profit is projected to .

1.
increase by $35,100

2.
decrease by $5,250

3.
increase by $5,250

4.
decrease by $7,000

Answers: 3

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Flash City Inc. manufactures small flash drives and is considering raising the price by 75 cents a u...