Answer:
If the price increase is implemented, operating profit is projected to increase by $35,100.
Step-by-step explanation:
In order to calculate the operating profit is projected to If the price increase is implemented we would need to make the following calculation:
Particulars Current Projected Change
Sale Price 8.5 9.25 0.75
Less: Cost 5.8 5.8 0
Contribution 2.7 3.45 0.75
Units Sold 79,000 72,000 -7.000
Total Contribution 213,300 248,400 35,100
If the price increase is implemented, operating profit is projected to increase by $35,100