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Ohanlon Corporation manufactures numerous products, one of which is called Delta-27. The company has provided...

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Ohanlon Corporation manufactures numerous products, one of which is called Delta-27. The company has provided the following data about this product: Unit sales (a) Selling price per unit Variable cost per unit 210,000 $ 62.00 41.00 $ 21.00 Contribution margin per unit (b) Total contribution margin (a) x (b) Traceable fixed expense $4,410,000 3,510,000 $ 900,000 Net operating income Required a. Management is considering increasing the price of Delta-27 by 596, from $62.00 to $65.10. The company's marketing managers estimate that this price hike would decrease unit sales by 10%, from 210,000 units to 189,000 units Assuming that the total traceable fixed expense does not change, what net operating income will Delta-27 earn at a price of $65.10 if this sales forecast is correct? b. Assuming that the total traceable fixed expense does not change, if Ohanlon increases the price of Delta-27 to $65.10, what percentage change in unit sales would provide the same net operating income that it currently earns at a price of $62.00? (Round your "Percentage" answer to 1 decimal place.) a. Net operating income b. Percentage change in unit sales

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