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What will be the be sales change

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Question - ABC Manufacturing is a small company manufacturing steel sheets. Following are ABC Manufacturing's income and costs for a typical month:

Sales 6,000 units

Wholesale price $40.00 per unit

Variable costs $15.00 per unit

Fixed costs $15,000

1. If ABC's price is reduced by 10% and if ABC's variable costs reduce by 10%, what will be the % BE sales change?

13.11%

12.11%

10.11%

11.11%

2. What is optimal price?

none of these

Optimal price is the price that will produce highest segmented profit

Optimal price is the price that will produce highest contribution after variable costs

Optimal price is the price that will produce highest market share.

Reference no: EM132708458

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