Question
A firm is able to sell 25,000 units at $ 10 per piece. The company fixed cost is $50,000. Variable cost is $5 per unit.
A firm is able to sell 25,000 units at $ 10 per piece. The company fixed cost is $50,000. Variable cost is $5 per unit.
Q1. What is the breakeven sales in $? What is the breakeven sale in units?
Q2. What i the markup on sales price? What is the markup on total cost?
Q3. If they raise the price to $15 and demand drops to 15,000, please calculate the price elasticity.
Q4. What is the new markup(profit margin %) on the sales price $15?
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Essentials of Marketing
Authors: William D. Perreault, Joseph P. Cannon
13th edition
78028884, 978-0078028885
