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Netcos sales budget for the coming year is as follows. Item Volume in Units Sales Price Sales Revenue 1 200,000 $50 $10,000,000 2 150,000 10
Netcos sales budget for the coming year is as follows. Item Volume in Units Sales Price Sales Revenue 1 200,000 $50 $10,000,000 2 150,000 10 1,500,000 3 300,000 30 9,000,000 Total sales revenue $20,500,000 Items 1 and 3 are different models of the same product. Item 2 is a complement to Item 1. Past experience indicates that the sales volume of Item 2 relative to the sales volume of Item 1 is fairly constant. Netco is considering a 10% price increase for the coming year for Item 1, which will cause sales of Item 1 to decline by 20% while simultaneously causing sales of Item 3 to increase by 5%. If Netco institutes the price increase for Item 1, total sales revenue will decrease by
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