Question
A company that makes flat screen televisions has decided to increase its price and believes that it can maintain the same total dollar margin even
A company that makes flat screen televisions has decided to increase its price and believes that it can maintain the same total dollar margin even if they lose sales. Right now they sell 1,370 televisions a year at a price of $797. The variable cost for each TV is $467.66 The company has decided to increase price by 10% and the sales department wants to understand the revenue target.
What is the total revenue that is needed at the new price in order to maintain the same total dollar margin?
Step by Step Solution
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Step: 1
To find the new total revenue needed to maintain the same total dollar margin after a price increase ...
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
