Tolol fixed costs of our business is 600.000$ and unit contribution ratio is 60%. Under these...

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Tolol fixed costs of our business is 600.000$ and unit contribution ratio is 60%. Under these circumstances 300.000$ prodit is expected by 50.000 pieces sole in the following period. A change in the sole price is proposed by the marketing department due to the demand elasticity in the market! a) 15 / reduction in the price will increase the sole volume by 25 do, 6) 20% reduction J b 40 do 925010 30 40 11 margin EX Due to the information given above in order to increase the profit, designate if a reduction in the price is needed and it so which alternative thould be preferred. Tolol fixed costs of our business is 600.000$ and unit contribution ratio is 60%. Under these circumstances 300.000$ prodit is expected by 50.000 pieces sole in the following period. A change in the sole price is proposed by the marketing department due to the demand elasticity in the market! a) 15 / reduction in the price will increase the sole volume by 25 do, 6) 20% reduction J b 40 do 925010 30 40 11 margin EX Due to the information given above in order to increase the profit, designate if a reduction in the price is needed and it so which alternative thould be preferred.

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Step 11 In order to increase profit it is important to consider the relationship between changes in ... View the full answer