Question
fast plzz Your client is a food container producer and currently sells 20,000 units per year. This container is priced at $12 on the market.
fast plzz
Your client is a food container producer and currently sells 20,000 units per year. This container is priced at $12 on the market. The raw material cost and the labor cost is $5 and $4 per unit respectively.
The fixed cost is $ 30,000 per year.
To gain more profit, the company is planning to decrease the price of the container by 25%, which will increase the sales volume by 30%. The raw material cost will decrease by 20% thanks to the larger purchase volume. Meanwhile, the labor cost and the fixed cost will stay the same.
How much profit can the company make in these two cases respectively?
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