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6.38 Working with unit-level data, pricing (LO2). The Dj Vu Card Company offers greeting cards for every occasion at unmatched prices. The following information comes
6.38 Working with unit-level data, pricing (LO2). The Dj Vu Card Company offers greeting cards for every occasion at unmatched prices. The following information comes from Dj Vu's accounting records for December of the most recent year: Greeting cards sold 100,000 cards Selling price $1.00 per card Fixed costs: Manufacturing $0.30 per card Marketing & administrative $0.21 per card Variable costs: Manufacturing $0.15 per card Marketing & administrative $0.08 per card Required: Dj Vu has an extra stock of 5,000 holiday greeting cards. The company is consider- ing two options: (1) holding a 50% off sale and (2) holding an 80% off sale. Dj Vu expects to sell 1,500 cards if it holds a 50% off sale and 4,000 cards if it holds an 80% off sale. The remaining cards would be discarded. Which option should Dj Vu pursue
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