flash city inc manufactures small flash drives and is considering raising the price by 75 cents a unit for the coming year. With a 75 -cent price increase demand is expected to fall 7000 units. Demand 76,000 units 69,000 units Selling price $8.75 $9.50 Incremental cost per unit $4.80 $4.80 Would you recommend the 75 - cent price increase?
flash city inc manufactures small flash drives and is considering raising the price by 75 cents a unit for the coming year. With a 75 -cent price increase demand is expected to fall 7000 units. Demand 76,000 units 69,000 units Selling price $8.75 $9.50 Incremental cost per unit $4.80 $4.80 Would you recommend the 75 - cent price increase?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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flash city inc manufactures small flash drives and is considering raising the price by 75 cents a unit for the coming year. With a 75 -cent price increase demand is expected to fall 7000 units.
Demand
76,000 units
69,000 units
Selling price
$8.75
$9.50
Incremental cost per unit
$4.80
$4.80
Would you recommend the 75 - cent price increase?
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