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A printer manufacturer estimates that the average purchaser of a printer will also purchase six ink refills over the lifetime of the printer. The relevant

A printer manufacturer estimates that the average purchaser of a printer will also purchase six ink refills over the lifetime of the printer. The relevant data are: Printer: price: $400, margin: $100 Refills: price: $40, margin: $30 The manufacturer is considering increasing the price of printers by 10% to $440. What volume decrease in the sales of printers is the stay-even sales change for the firm? (Ignore the issue of discounting the value of future ink refill sales. Imagine, for example, that all six are purchased upfront with the printer).

A. 11.5%

B. 12.5%

C. 13.5%

D. 14.5%

Use = % Q = (Pold - Cold)/(Pnew - Cold) - 1

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