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Columbia, Inc. provides golf course design consulting. Its current consulting rate is $ 1 7 5 per hour. Variable costs are estimated at $ 9
Columbia, Inc. provides golf course design consulting. Its current consulting rate is $ per hour. Variable costs are estimated at $ per hour, and total fixed costs are expected to be $ Annual sales volume is projected to be hours. Due to the growth of an aggressive competitor, Columbia management is considering lowering its prices by which would enable the company to maintain its current sales volume. If Columbia leaves its prices at the current rate, it can expect its sales volume to drop by Which choice is the better alternative and why?
Allow its sales volume to decline by because it results in a smaller net income change than if the company lowers its consulting rate by
Lower its current consulting rate by because it results in a smaller net income change than if the company allows the volume to decline by
Lower its current consulting rate by because a change is smaller than a change.
Maintain its price and sales volume because Columbia is a price leader.
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