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Should they cut the price

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Question - Danbam Corp. has fixed costs of P92,000 and variable costs that are 30% of the current sales price of P4.30. At a price of P4.30, DanBam sells 40,000 units. DanBam can increase sales by 10,000 units by cutting its unit price form P4.30 to P3.44, but variable cost per unit won't change. Should they cut the price?

Reference no: EM133087971

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