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Determine the dumping price of the excess units produced

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A novelty company was producing 220,000 items for $3.80 each. Theysold these for $6.00 each. Recently, the demand for the items has dropped to180,000 units at that $6.00 price. The company can reduce production to 180,000units. Each unit would cost $4.10 at the 180,000 level of production.If the company decides to maintain the current level of production of 220,000 determine the dumping price of the excess units produced.

Reference no: EM13856946

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