Ex 3.1 Use the previous text. The general director must decide: 2000 units of product B is sold at the price of 24€. If the principle competitor cuts the price to 20€, Beta could have two alternatives: a. Take price unchanged, sell only 1500 units of B, b. Cut the price to 20€ and continue to sell 2000 units of B. What decision is the most convenient for the company?
Ex 3.1 Use the previous text. The general director must decide: 2000 units of product B is sold at the price of 24€. If the principle competitor cuts the price to 20€, Beta could have two alternatives: a. Take price unchanged, sell only 1500 units of B, b. Cut the price to 20€ and continue to sell 2000 units of B. What decision is the most convenient for the company?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Ex 3.1
Use the previous text.
The general director must decide:
2000 units of product B is sold at the price of 24€ If the principle competitor cuts the price to 20€, Beta could have
two alternatives:
a. Take price unchanged, sell only 1500 units of B;
b. Cur the price to 20€ and continue to sell 2000 units of B.
What decision is the most convenient for the company?
Transcribed Image Text:Ex 3.2
Use the previous text.
Calculate the Breakeven point revenue for the company, assuming a product mix of 35%, 40% and 25%, and price
20 €, 24 € and 14 €.
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