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Snowboard Company is a manufacturer of one model of snowboard. Their current revenues and costs are based on the following information (the base case, copied
- Snowboard Company is a manufacturer of one model of snowboard. Their current revenues and costs are based on the following information (the base case, copied from Figure 6.6 in the text). Assume the unit sales price decreases by 10 percent from the base case. (6.3)
| Base Case |
Sales price per unit | $250 |
Variable cost per unit | $150 |
Monthly fixed costs | $50,000 |
Volume of sales | 700 units |
- Calculate the new projected profit.
- Calculate the dollar change in profit from the base case.
- Calculate the percent change in profit from the base case.
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