At a current contribution margin % of 80% how much must quantity sold increase by for a price reduction of 6% to be worthwhile? By more than:

A) 8.1% B) 9.4% C) 10.3% D) 11.7% E) Other

At a current contribution margin % of 80% how much must quantity sold decrease by for a price increase of 6% not to be worthwhile? By more than:

A) 6% B) 7% C) 8% D) 9% E) Other

Current contribution margin %: 50.0% Price Reduction 1% Increase in sales needed in order to match previous dollar total contribution 2.0% 8 9 10 11 12 13 14 15 16 17 18 19 20 Price Increase 1% 2% 3% Decrease in sales that would eliminate any contribution gain from a price increase 2.0% 3.8% 5.7% 2% 4.2% 3% 6.4% 4% 8.7% 4% 7.4% 5% 11.1% 5% 9.1% 6% 13.6% 6% 10.7% 7% 16.3% 7% 12.3% 8% 8% 13.8% 21 19.0% 22.0% 9% 9% 15.3% 10% 25.0% 10% 16.7% 11% 11% 18.0% 28.2% 31.6% 35.1% 12% 12% 13% 19.4% 13% 20.6% 14% 38.9% 14% 21.9% 22 23 24 25 26 27 28 29 30 31 32 15% 42.9% 15% 23.1% 16% 47.1% 16% 24.2% 17% 51.5% 17% 25.4% 18% 18% 56.3% 61.3% 26.5% 27.5% 19% 19% 20% 66.7% 20% 28.6%