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(2) a.) Dominion is trying to gain more market share, and we know that if we lower average selling price, companies usually will gain more
(2) a.) Dominion is trying to gain more market share, and we know that if we lower average selling price, companies usually will gain more customers. Therefore, if in 2024, Dominion lowered the average price to $1249 and sales increased by 10%, would the companys total gross profit be more or less than the current amount? Assume demand and cost are the same. [2024 scenario 1]
b.) If the gross profit is less, how much more does Dominion Voting need to sell (% increase in volume) to breakeven on profit?
Calculate \% Change in Unit Volume to Break Even on a Price Change = (Originalmargin)+(%PriceChange)%PriceChange
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