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Superior Manufacturing Company
Essay specific features
Written by:
Matthew A
Date added:
December 15, 2014
Level:
University
Grade:
A
No of pages / words:
3 / 646
Was viewed:
3098 times
Rating of current essay:
Essay content:
Let us assume the linear relationship between price and quantity:
Qty Sold = 750,000 + [{($.24.5- New Price)/($24.5 -$22.50)} X 250,000] = 750,000 + {($.24.5- New Price) X 125,000}
When price is $20.6, the quantity is 1,242,425 and profit is $101, we come near to break even point.
To sum up, if Superior reduces the price of product 101, its profit will increase significantly to breakeven...
displayed 300 characters
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Let us assume the linear relationship between price and quantity:
Qty Sold = 750,000 + [{($.24.5- New Price)/($24.5 -$22.50)} X 250,000] = 750,000 + {($.24.5- New Price) X 125,000}
When price is $20.6, the quantity is 1,242,425 and profit is $101, we come near to break even point.
To sum up, if Superior reduces the price of product 101, its profit will increase significantly to breakeven...
displayed 300 characters
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