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Currently Projected Demand 20,000 units 17,000 units Selling price $4.50 $5.00 Incremental cost per unit $3.00 $3.00 17. If the price increase is...
Currently Projected Demand 20,000 units 17,000 units Selling price $4.50 $5.00 Incremental cost per unit $3.00 $3.00 17. If the price increase is implemented, operating profit is projected to: a. increase by $4,000 b. decrease by $4,000 c. increase by $6,000 d. decrease by $4,500 [17,000 x ($5 $3)] [20,000 x ($4.50 $3.00)] = increase of $4,000 18. Would you recommend the 50-cent price increase? A. No, because demand decreased. B. No, because the selling price increases.