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A company wants to produce 200,000 units next year making the total cost $1,200,000. Fixed costs total $460,000. Selling price per unit is $9....
A company wants to produce 200,000 units next year making the total cost $1,200,000. Fixed costs total $460,000. Selling price per unit is $9.00. Management wants to lower the price to $8.00 per unit, and thinks that taking this action will increase sales to 230,000 units. If 230,000 units are produced and sold, what would the incremental profit or loss be?