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Find what is the change in operating income

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Techno World currently sells laptops for $980. It has costs of $900. A competitor is bringing a new laptop to market that will sell for $960. Management believes it must lower the price to $960 to compete in the market for laptops. Marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. Techno World sales are currently 100,000 laptops per year.

Question 1: What is the change in operating income if marketing is correct and only the sales price is changed?

Reference no: EM132536349

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