Should cut the price

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Problem 1: Aed Corporation has fixed costs of $100,000 and variable costs that are 70 percent of the current sales price of $20. Aed sells 30,000 units at this price. Aed can increase sales by 10,000 units by cutting its unit price to $15, but variable cost per unit won't change. Should it cut its price?

Reference no: EM132888927

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