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Please answer this ASAP and I will rate you thumbs up With reference to Acme Tools in Question 1, assume price and demand are unrelated.
Please answer this ASAP and I will rate you thumbs up
With reference to Acme Tools in Question 1, assume price and demand are unrelated. The company can sell the plier sets for $55 each if they spend $3,000 per month on advertising (C). C, and c remain as indicated in Question 1. The maximum production capacity is 5,000 sets per month. a) What is the demand breakeven point? Provide an explanation. b) Is the company's demand breakeven point (in %) more sensitive to 10% increase in sales price or 20% reduction in the variable costs? Explain your answer. With reference to Acme Tools in Question 1, assume price and demand are unrelated. The company can sell the plier sets for $55 each if they spend $3,000 per month on advertising (C). C, and c remain as indicated in Question 1. The maximum production capacity is 5,000 sets per month. a) What is the demand breakeven point? Provide an explanation. b) Is the company's demand breakeven point (in %) more sensitive to 10% increase in sales price or 20% reduction in the variable costs? Explain your Step by Step Solution
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