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Stickco sells hockey sticks for $90, incurs variable costs of $50 per stick and has fixed costs of $35,000. Last year they sold 1,000 sticks.
Stickco sells hockey sticks for $90, incurs variable costs of $50 per stick and has fixed costs of $35,000. Last year they sold 1,000 sticks. They are considering a 30% price decrease to move or sell more sticks. Assuming all the variable and fixed costs remain the same: (a) How many sticks do they need to sell to simply breakeven? (2 Marks) Answer only: (b) What was their profit if they did sell 1,000 sticks? (3 Marks) Answer only: (c) How many hockey sticks would they need to sell in order to generate the same profit of $5,000, if they lower the price by 30%
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