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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

  1. 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:
  1. How many sticks do they need to sell to simply breakeven?
  2. What is their profit if they do sell 10,000 sticks?
  3. 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%?
  4. How many sticks more did they have to sell in part (c) with the lower price vs. (b) the original price.
  5. 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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