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What is the expected unit sales decrease

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The short-run elasticity of demand for chicken breasts is measured by the National Chicken Council to be « 5 20.75.

a. What is the expected unit sales decrease from a 10 percent price increase?

b. If the contribution margin for the value chain is 30 percent, what is the allowable volume loss for a 10 percent price increase?

c. Should the value chain expect a 10 percent price increase in chicken breasts to improve profits?

Reference no: EM132789769

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