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Pete's Power Pizzas sells a chocolate/tofu filled pastry. Pete's currently sells this pastry for $14.14, and makes it for a variable cost of $5.10
Pete's Power Pizzas sells a chocolate/tofu filled pastry. Pete's currently sells this pastry for $14.14, and makes it for a variable cost of $5.10 per pie. A drop in cocoa prices will reduce variable cost for this product by $0.45 per pie. Pete's is thinking of reducing the pie's selling price by $1.25. By what percent must Quantity demanded increase so that Pete's just maintains its current total contribution margin (margin per unit times units sold)? (Report your answer as a percent. Report 25.5%, for example, as "25.5". Rounding: tenth of a percent.)
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