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Should alba rain gear raise the selling price of umbrellas

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Reference no: EM132836495

Problem 1: Alba Rain Gear sells monogrammed umbrellas on Etsy. Alba Rain Gear is currently selling 3,000 umbrellas a month at a price of $36 per umbrella. The variable cost of each umbrella sold includes $8 to purchase the merchandise from suppliers and a $2 commission paid to Etsy. Fixed costs are $2,200 per month. The company is considering raising the selling price of each umbrella to $41?, but believes the number of umbrellas sold would drop by 20?% as a result of the price increase. Should Alba Rain Gear raise the selling price of its? umbrellas?

Reference no: EM132836495

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