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Is it convenient for company to reduce the price

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Question - The current selling price of product Alpha is equal to 155 euros corresponding to a volume of 22.500 units. The Sales management wants to reduce the selling price to 140 Euros with a planned increase in sold quantity of 5.500 units. Please consider that raw material variable cost per unit is equal to 20 euros and DML variable cost per unit 32 euros. Commissions are 2.5% of the selling price. Is it convenient for company to reduce the price to 140 Euros and increase the sold quantity?

Reference no: EM132923894

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