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Question 3: Pricing decisions Total fixed costs are $15,000. Unit variable cost is $30. At current selling price of $75. you sell 1,000 units per
Question 3: Pricing decisions Total fixed costs are $15,000. Unit variable cost is $30. At current selling price of $75. you sell 1,000 units per month. If you reduce the price by 10% sale volume will increase to 1,300 Compute profit at the original price: Compute profit at the reduced price: Should you reduce the price? O YES, because revenue will increase by $12,750 ONO, because a lower price always reduce pro YES, because profit will increase by $3,750
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Managerial Accounting Tools For Business Decision Making
Authors: Jerry J Weygandt, Paul D Kimmel, Jill E Mitchell
9th Edition
9781119754053
