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all company with a big name! Parker Industries is actually a one-person company that imports strands of LED lights from China erhead is a storage unit for inventory that costs $125 a month and a $25 monthly fee for website hosting. Currently, Parker imp ng) and sells them for $4.49. Parker also pays shipping expenses of $.50 per light strand. If Parker's shipping charges increas would increase d decrease

all company with a big name! Parker Industries is actually a one-person company that imports strands of LED lights from China erhead is a storage unit for inventory that costs $125 a month and a $25 monthly fee for website hosting. Currently, Parker imp ng) and sells them for $4.49. Parker also pays shipping expenses of $.50 per light strand. If Parker's shipping charges increas would increase d decrease

Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Parker Industries is a small company with a big name! Parker Industries is actually a one-person company that imports strands of LED lights from China and sells them through its website. Parker's only overhead is a storage unit for inventory that costs $125 a month and a $25 monthly fee for website hosting. Currently, Parker imports the lights for $.99 each (including inbound shipping) and sells them for $4.49. Parker also pays shipping expenses of $.50 per light strand. If Parker's shipping charges increased to $.75 a strand, what would happen? Breakeven volume would increase Variable cost would decrease Profit would increase Breakeven volume would decrease OO OO
Transcribed Image Text:Parker Industries is a small company with a big name! Parker Industries is actually a one-person company that imports strands of LED lights from China and sells them through its website. Parker's only overhead is a storage unit for inventory that costs $125 a month and a $25 monthly fee for website hosting. Currently, Parker imports the lights for $.99 each (including inbound shipping) and sells them for $4.49. Parker also pays shipping expenses of $.50 per light strand. If Parker's shipping charges increased to $.75 a strand, what would happen? Breakeven volume would increase Variable cost would decrease Profit would increase Breakeven volume would decrease OO OO
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