The product design team of Cervantes Golf Company is in the process of designing a new model
Question:
Required
a. Suppose the company wants to set its price equal to full cost plus 35 percent. To determine cost, the company must estimate the number of units it will produce and sell in a year. Suppose the company estimates that it can sell 8,000 units. What price will the company set?
b. Suppose the company sets a price as in part a, but the number of units demanded at that price turns out to be 6,000. Revise the price in light of demand for 6,000 units.
c. Compare the two prices you just calculated; why are the prices different? What is likely to happen to the quantity demanded if the company is forced to raise its price to the price calculated in part b?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
a Variable cost per unit 3000 Fixed cost per unit 800000 8000 10000 Total ...View the full answer
Answered By
Shubhradeep Maity
I am an experienced and talented freelance writer passionate about creating high-quality content. I have over five years of experience working in the field and have collaborated with several renowned companies and clients in the SaaS industry.
At Herman LLC, an online collective of writers, I generated 1,000+ views on my content and created journal content for 100+ clients on finance topics. My efforts led to a 60% increase in customer engagement for finance clients through revamping website pages and email interaction.
Previously, at Gerhold, a data management platform using blockchain, I wrote and published over 50 articles on topics such as Business Finance, Scalability, and Financial Security. I managed four writing projects concurrently and increased the average salary per page from $4 to $7 in three months.
In my previous role at Bernier, I created content for 40+ clients within the finance industry, increasing sales by up to 40%.
I am an accomplished writer with a track record of delivering high-quality content on time and within budget. I am dedicated to helping my clients achieve their goals and providing exceptional results.
1+ Reviews
10+ Question Solved
Related Book For 
Question Posted:
