Nutty Co. Gourmet Snacks currently sells their Gourmet Deluxe Gift Basket for $300 each. Nutty Co. currently holds 20 percent of the market share for high-end gift baskets.The marketing manager believes that the market share can be increased to 30 percent if the price is reduced to by 25%.Currently, each Gourmet Deluxe Gift Basket is earning a profit of $50. Nutmeg, the CEO of Nutty Co., wants to maintain the same profit level per unit. Each year the total market for high-end gift baskets is 5,000 units.

4. At this target price, how many Gourmet Deluxe Gift Baskets will Nutty Co. be able to sell?

5. What is the target cost per unit?

6. How much profit will Nutty Co. realize at the target price?