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Chunski's Bullet-proof Paint protects any surface from bullets. The paint is based on space-age technology, and costs $2 to make each can. The company enjoys
Chunski's Bullet-proof Paint protects any surface from bullets. The paint is based on space-age technology, and costs $2 to make each can. The company enjoys a margin of 30%, and has various fixed costs totalling $600. Currently the company makes $800 a year in net profits before taxes. Chunski is considering a price reduction to stimulate demand. He hopes to make $200 more in profits by this price reduction campaign. 1. How many cans of paint does Chunski currently sell? If Chunski implements the price reduction with a 10% price drop, how many MORE cans does he have to sell to achieve his target? Back to the original scenario. If costs of good sold increases by 15%, and Chunski also raises prices by 15%, what quantity does he have to sell to make $1, 200 in profits before taxes
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