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Dr. Sherman's Tooth Care needs to reduce the selling price of its toothbrushes to be competitive. Currently, Dr. Sherman's Tooth Care has fixed costs of

Dr. Sherman's Tooth Care needs to reduce the selling price of its toothbrushes to be competitive. Currently, Dr. Sherman's Tooth Care has fixed costs of $352,300 and variable costs per unit of $2.50. If they can sell 80,000 units each year, what price should it charge to break even? If the competitors' average selling price in the market is $6, what strategies would you recommend to Dr. Sherman's Tooth Care in order to compete in the market?

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Solution To calculate the breakeven price we need to find the price at which the total revenue equals the total cost The total cost includes the fixed ... blur-text-image

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