l in demand by 2,000 units. Currently Projected Demand 30,000
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Arma Ltd manufactures notebooks and is considering increasing the price by 20p per unit for the coming month.
This is expected to lead to a fall in demand by 2,000 units.
Currently Projected
Demand 30,000 units 28,000 units
Selling price £1.8 £2
Cost per unit £1.1 £1.1
If Arma implemented the price increase, operating profit is expected to:
a. None of the above
b. decrease by £4,200
c. increase by £2,000
d. increase by £4,200
Given :
Currently Projected
Demand 30,000 units 28,000 units
Selling Price £1.8 £2
Cost per unit £1.1 £1.1
Find :
If Arma implemented the price increase, operating profit is expected to
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