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Consider a firm with a current contribution margin of 30 percent. a. What is the volume hurdle associated with a 1 percent price decrease? What

Consider a firm with a current contribution margin of 30 percent.

a. What is the volume hurdle associated with a 1 percent price decrease? What is the allowable volume loss associated with a 1 percent price increase?

b. What is the volume hurdle associated with a 5 percent price decrease? What is the allowable volume loss associated with a 5 percent price increase?

c. What is the volume hurdle associated with a 10 percent price decrease? What is the allowable volume loss associated with a 10 percent price increase?

d. What is the volume hurdle associated with a 20 percent price decrease? What is the allowable volume loss associated with a 20 percent price increase?

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