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Example: ABC Co. has sold 75.000 unit in 20X1 while the selling price is 10 TL. The annual total fixed cost is 360.000 TL. Unit
Example: ABC Co. has sold 75.000 unit in 20X1 while the selling price is 10 TL. The annual total fixed cost is 360.000 TL. Unit contribution margin is 6 TL. Company aims a profit growth. Company can achieve its target in two way: Selling price can be increased by 20% or selling price can be decreased by 20%. 20% increase in selling price cause a 20% decrease in selling volume. On the other hand a 20% decrease in selling price cause a 40% increase in selling volume. Required: Compute the selling price regarding two alternatives
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