Solution-Calculate volume hurdle required to maintain

Calculate volume hurdle required to maintain profitability

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Reference no: EM132824767

Question - Your company's energy drink sells for $1.99 a can. Variable costs are $0.89 and sales are 1,500,000/6 months.

Calculate the volume hurdle required to maintain your current profitability under these scenarios:

1. A price reduction of 5% (variable cost remains the same).

2. Variable cost increase of 2% (price remains the same).

3. Price is increased by 11% and variable cost is reduced by 3%.

Reference no: EM132824767

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Calculate volume hurdle required to maintain profitability

Reference no: EM132824767

Reference no: EM132824767

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