Adrian's TV currently sells small televisions for $180 (per unit). It has costs of $140 (per unit). A competitor is bringing a new small television to market that will sell for $150 (per unit). Management believes it must lower the price to $150 (per unit) to compete in the market for small televisions. Marketing believes that the new price will cause sales (volume) to increase by 10%, even with a new competitor in the market. Adrian's sales (volume) are currently 100,000 televisions per year. What is the change in profit margin if Marketing is correct and only the sales price is changed (i.e., the change in selling price will cause sales volume to increase by 10% and will not change the cost per unit)? 

Answer rating: 100% (QA)

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