Assuming a contribution margin of 25 percent and sales of $4 billion, with a 20 percent price
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Assuming a contribution margin of 25 percent and sales of $4 billion, with a 20 percent price increase, by how much can sales decrease before profitability (total contribution) drops below its current level? Refer to Financial Analysis of Marketing Tactics: Price Decrease in Appendix 2: Marketing by the Numbers to learn how to perform this analysis, but determine the maximum drop in sales before total contribution is negatively affected. (AACSB: Communication; Analytic Reasoning)
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Related Book For
Principles Of Marketing
ISBN: 9781292341132
18th Global Edition
Authors: Philip Kotler, Gary Armstrong
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