1)EasyFind manufactures and sells golf balls. The company is conducting a price test to find a better price point. Presently their golf balls sell for $19 per dozen. Their current volume is 4,890 dozen per month. They are considering reducing their sales price by 29% per dozen.

CALCULATED VARIABLES: newvol = 12,610 newunits = 6,887 newucont = $3.49 newprice = $13.49 tcont = $44,010 revenues = $92,910

What % increase in unit sales is necessary to achieve the same level of total contribution?

2)A leading beverage company sells its signature soft drink brand in vending machines for $0.72 per 12 oz. can. A vending machine has monthly fixed costs of space rental, energy consumption, and capital depreciation of $135. Variable cost for a can of soda is $0.41.

The optimistic regional sales manager wondered what the selling price of the soda would need to be in order to achieve a 20% increase in the contribution per unit?

3)Sparkle This! is an online jewelry store. The owner, Joe Diamond, maintains a 37% target margin at all times. They are considering adding ruby heart pendants to their product line for Valentine's Day. The cost from their supplier is $39. Joe estimates they can sell 57 pendants for Valentine's Day at the price based on their usual target margin.

What would be the appropriate price to achieve their usual target margin?