Grove Audio is considering the introduction of a new model of wireless speakers with the following price and cost characteristics. Sales price $ 437.00 per unit Variable costs 197.00 per unit Fixed costs 673,000 per year Assume that the projected number of units sold for the year is 4,100. If variable costs per unit decrease by 10%, how much will operating profit increase? If variable costs per unit increase by 20%, how much does operating profit decrease?

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14-07-2024
Business

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Grove Audio is considering the introduction of a new model of wireless speakers with the following price and cost characteristics. Sales price $ 437.00 per unit Variable costs 197.00 per unit Fixed costs 673,000 per year Assume that the projected number of units sold for the year is 4,100. If variable costs per unit decrease by 10%, how much will operating profit increase? If variable costs per unit increase by 20%, how much does operating profit decrease?

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