Question: Assume that Macrohard has started its operations and is doing fairly well. However, based on some market research about economic demand curves and price sensitivity,

Assume that Macrohard has started its operations and is doing fairly well. However, based on some market research about economic demand curves and price sensitivity, Macrohard is considering lowering its price to $20. What is the incremental break-even volume as a percentage of the old no. of units? Explain whether or not this incremental level of sales appears feasible. Hint: Gross Margin % is the same as Unit Margin %

Old Unit Price = $25

FC = $12,500,000

VC = $12.5

Old Unit Margin = 12.5

Old Break-Even Volume = 1,000,000 Units

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