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The product manager for ointments at NAT Corporation shared financial data from 2 0 2 3 ( see table below ) . She has proposed
The product manager for ointments at NAT Corporation shared financial data from see table below She
has proposed a price reduction for and her marketing research indicates sales volume will increase
by units in if they do the price cut. Answer the following:
a What is the "Unit Price" if there is a price reduction?
b Using the Projections" figures for Unit price and Unit Variable cost, what is the Unit gross
profit margin? Explain what this figure means in English."
c If Unit Volume was units, how many are expected to be sold in at the lower
price?
d Using your answers from Parts ABC above, calculate the TOTAL Gross Profit Margin in for
RashAway if the price is cut by
e Calculate the TOTAL Gross Profit Margin from
f Based on your answers to part D and E do you recommend the price cut? Why or why not?
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