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Stickco sells hockey sticks for $90, incurs variable costs of $50 per stick and has fixed costs of $350,000. They are considering a 30% price
- Stickco sells hockey sticks for $90, incurs variable costs of $50 per stick and has fixed costs of $350,000. They are considering a 30% price decrease to sell (or move) more sticks. Assuming all the variable and fixed costs remain the same during the question:
- How many sticks do they need to sell to simply breakeven?
- What is their profit if they do sell 10,000 sticks?
- How many sticks (total volume) would they need to sell to generate the same amount of profit in Part (b), if they lower the price by 30%?
- How many sticks more did they have to sell in part (c) with the lower price vs. (b) the original price.
- What was the percentage increase in sales required to compensate for the 30% decline in price, and maintain the same amount of profit?
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