Question
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
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 $4.60. Fixed costs are estimated at $8,775,000. Variable costs are currently $2.45. 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 $0.30. 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.
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