The management has found that every 4% decrease in the selling price of one of the company's products leads to a 6% increase in the product's total unit sales. The product's absorption costing unit product cost is ₱23.60. The variable production cost of the product is ₱2.80 per unit and the variable selling and administrative cost is ₱6.30 per unit. The product's profit-maximizing price is closest to: a. ₱29.04 b. ₱30.39 c. ₱31.06 d. ₱78.82
The management has found that every 4% decrease in the selling price of one of the company's products leads to a 6% increase in the product's total unit sales. The product's absorption costing unit product cost is ₱23.60. The variable production cost of the product is ₱2.80 per unit and the variable selling and administrative cost is ₱6.30 per unit. The product's profit-maximizing price is closest to: a. ₱29.04 b. ₱30.39 c. ₱31.06 d. ₱78.82
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The management has found that every 4% decrease in the selling price of one of the company's products leads to a 6% increase in the product's total unit sales. The product's absorption costing unit product cost is ₱23.60. The variable production cost of the product is ₱2.80 per unit and the variable selling and administrative cost is ₱6.30 per unit. The product's profit-maximizing price is closest to:
a. ₱29.04
b. ₱30.39
c. ₱31.06
d. ₱78.82
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