1.  NO CELL PHONES ALLOWED  2.  YOU MUST UPLOAD YOUR WORK UN…

1.  NO CELL PHONES ALLOWED  2.  YOU MUST UPLOAD YOUR WORK UNDER THE CHAPTER 7 TEST WORKED OUT SOLUTIONS.  Turn in the scratch paper on the same day that the test is completed.  If scratch paper is not uploaded, you will receive a 0.   3.  Any evidence of the use of a math solver or AI tool will be considered academic dishonesty and will be marked incorrectly.  4.  You may input your answer in the box or leave them on the scratch paper.  (to input the answer in the box using math symbols, click on the symbol)   Do you understand?

A company sells a product for $120 per unit. The variable co…

A company sells a product for $120 per unit. The variable cost is $70 per unit, and fixed costs total $30,000 per month. Currently, the company sells 800 units per month. Management plans to reduce the selling price by 10%, which is expected to increase sales volume by 25%. Fixed costs and variable cost per unit will remain unchanged. What will be the company’s new operating income after this change?