What is the initial contribution

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Reference no: EM133168807

A retailer is considering a 33% off sale on blenders currently priced o blender to the manufacturer.

Questions:

1) What is the initial contribution?

2) What is the proposed sale price and the percent change in price captured per unit sold?

3) What is the volume hurdle that must be achieved for the sale on blenders to improve profits?

4) Suppose that rather than decreasing price, the retailer opts to increase price to $59. What is the allowable loss in number of units sold that would still leave the retailer in the same profit position?

Reference no: EM133168807

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