Question
XYZ, inc. makes and sells bicycle parts. Last year XYZ sold 5,000 handlebars, generating sales of $100,000. This year they are considering a new pricing
XYZ, inc. makes and sells bicycle parts. Last year XYZ sold 5,000 handlebars, generating sales of $100,000. This year they are considering a new pricing strategy with a target profit goal of $17,000. They determined that for every $2 increase to the selling price, a 200 decrease in unit sales was expected. Their total costs were $110,000 with fixed costs accounting for $62,000. This year, XYZ, inc. is considering changing the selling price to $28.
If XYZ implements the price change under consideration, what will be the new expected sales volume (in units)?
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