Initially, the contribution margin for a good is 74.94. If fixed costs are $1191 and an anticipated 588 units are being sold, how much can the price of the good drop before this business should shut down in the short run (assuming costs stay the same)? Answer:

Initially, the contribution margin for a good is 74.94. If fixed costs are $1191 and an anticipated 588 units are being sold, how much can the price of the good drop before this business should shut down in the short run (assuming costs stay the same)? Answer:

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 3.5IP

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Initially, the contribution margin for a good is 74.94. If fixed costs are $1191
and an anticipated 588 units are being sold, how much can the price of the
good drop before this business should shut down in the short run (assuming
costs stay the same)?
Answer:

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