Answer the following questions using the information below:
LeBlanc Lighting manufactures table lamps and is considering raising the price by $15 a unit for the coming year.With a $15 price increase,demand is expected to fall by 2500 units.
-Would you recommend the $15 price increase?
A) No,because demand decreased.
B) Yes,because contribution margin per unit increases.
C) No,because the selling price increases.
D) Yes,because operating profit increases.
Correct Answer:
Verified
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