Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Maybelline recently introduced a high-end lip balm called Baby Lips. The national target market is female, age 24 - 34, income $45,000 and higher. The

Maybelline recently introduced a high-end lip balm called Baby Lips. The national target market is female, age 24 - 34, income $45,000 and higher. The current price is $4.70. Fixed costs are estimated at $8,775,000. Variable costs are currently $2.25. Maybelline believes that it can reduce cost of goods sold, due to favorable contract negotiations with ingredient suppliers for shea butter, centella and anti-oxidants. As a result, variable costs are predicted to decline by $0.40. Maybelline is debating whether to pass the cost savings on to the consumer or to maintain the current price. What would be the change in Maybelline's breakeven volume (in tubes, +/-) if the company maintains the current price? Round your answer to the nearest whole number.

Hello so the correct answer is (-502,685)

Can you please explain how (-502,685) is the correct answer? Thank you

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of Marketing

Authors: Philip Kotler, Gary Armstrong

14th Edition

132167123, 132997266, 9780132997263, 978-0132167123

More Books

Students also viewed these Marketing questions

Question

=+ (b) affect the world interest rate?

Answered: 1 week ago