Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

One way to maintain CSV for a brand is to raise its price. That's what hury fashion and later goodsmaker Lou Wilton did the company

image text in transcribed
image text in transcribed
One way to maintain CSV for a brand is to raise its price. That's what hury fashion and later goodsmaker Lou Wilton did the company is not want the brand to become overround and to carto, co se respect and is slowing ts expansion in China. The Lous Vuition brand is the largest corbutor to the company's $13.35 revenue from a fashion and the division, accounting for 5 billion at the same en content to w encourage lower customers to purchase a company's products, but when price resso do the produc contribution agr. making console more profitable Thus, an orp and the company and it mata wane profitably as before the price is a company original contribution Margin was calculate the new coronarin price is increased 18% Selain price equato 51.00. Then the variable coat is sound to the nearest cert) One way to maintain exclusivity for a brand is to raise its price. That's what luxury fashion and leather goods maker Louis Vuitton did. The company did not want the brand to become overexposed and too common, so it raised prices 10 percent and is slowing its expansion in China. The Louis Vuitton brand is the largest contributor to the company's $13.3 billion revenue from its fashion and leather division, accounting for $8 billion of those sales. It might seem counterintuitive to want encourage fewer customers to purchase a company's products, but when price increases, so does the product's contribution margin, making each sale more profitable. Thus, sales can drop and the company can still maintain the same profitability as before the price hike. If a company's original contribution margin was 60%, calculate the new contribution margin if price is increased 10%. Sut the initiat price equal to $1.00. Then the variable cont is $ (Round to the nearest cont.)

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

Students also viewed these Accounting questions

Question

=+ (c) Show that the Bernoulli shift is mixing.

Answered: 1 week ago