Walter Lee, director of marketing, wants to reduce the selling price of his company's products by 15%

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Walter Lee, director of marketing, wants to reduce the selling price of his company's products by 15% to increase market share. He says, "I know this will reduce our gross profit rate, but the increased number of units sold will make up for the lost margin." Before this action is taken, what other factors does the company need to consider?

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Financial Accounting Tools For Business Decision Making

ISBN: 9780471730514

4th Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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