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III. The sale price of the unique product is $30, assuming the sales 24.300 units and the fixed expenses $300.000 they expect $210.300 profit
III. The sale price of the unique product is $30, assuming the sales 24.300 units and the fixed expenses $300.000 they expect $210.300 profit in the next period. A new market research for profit planning shows the following results: a) 5% decrease in the unit sale price will cause 15% increase in the sales quantity, b) 15% decrease in the unit sale price will cause 30% increase in the sales quantity, c) 25% decrease in the unit sale price will cause 40% increase in the sales quantity. As a manager of the business make your decision, is there a need to make a change in the sale price, if "Yes" choose the most appropriate option.
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