If the breakeven sales level for a 10 percent price decrease is an increase of 14 units

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If the breakeven sales level for a 10 percent price decrease is an increase of 14 units over a base sales level of 100 units, would a price elasticity of –1.5 indicate that this price decrease would be profitable? Explain your reasoning.

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Pricing Strategies A Marketing approach

ISBN: 978-1412964746

1st edition

Authors: Robert M. Schindler

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Question Posted: Feb 04, 2016 06:22 AM

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If the breakeven sales level for a 10 percent price decrease is an increase of 14 units

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Unit sales E x P 15 x 10 15 The calculation tells us that in this situation a 10 price decr...View the full answer

Pricing Strategies A Marketing approach

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