Detmer holdings ag of zurich switzerland has just

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Detmer Holdings AG of Zurich, Switzerland, has just introduced a new fashion watch for which the company is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each SFr2 per unit reduction in the selling price. (SFr2 denotes 2 Swiss francs.) The company's present selling price is SFr94 per unit, and variable expenses are SFr64 per unit. Fixed expenses are SFr833,100 per year. The present annual sales volume (at the SFr94 selling price) is 25,600 units.

Reference no: EM13572432

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