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Cutting Edge Lawnmowers Ltd . ( CEL ) currently sells lawnmowers for $ 1 , 5 0 0 per unit. The COGS for each lawnmower
Cutting Edge Lawnmowers LtdCEL currently sells lawnmowers for $ per unit. The COGS for each lawnmower is $ and the company expects to sell units over the next year. CEL plans to reduce the price of its lawnmowers to $ per unit. If this happens, it expects expects sales to increase by and COGS to decrease by due to better economies of scale. What is the incremental impact of the price reduction on CEL's EBIT? Choose the best answer.
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