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Manning, Inc. is the leading manufacturer of garage doors. Demand for residential garage door sales depends, of course, on the rate of new home building activity, which, in turn, depends on changes in income per capita. During the past year, Manning sold 10,000 garage doors at an average price of $1,500 per door.In the upcoming year, disposable income per capita is expected to increase from $32,000 to $34,000. Without any price change, Manning expects upcoming year sales to rise to 12,000 units.
Given this information:
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