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The manager of a hardware store buys a popular small hammer for $2.25 per unit (assume there are no additional variable costs for this
The manager of a hardware store buys a popular small hammer for $2.25 per unit (assume there are no additional variable costs for this hammer). He has been selling the hammer for $5, and has calculated that the breakeven sales level for a $1 price decrease would be 46 units per month. If the $1 price decrease causes 62-unit increase in the monthly sales of the hammer, what will be the change in monthly profit resulting from this price decrease? 0-$46 $44 $28 -$64 0-$16
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