Superior Manufacturing Company

Essay specific features

 

Issue:

Business

 

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 $101, we come near to break even point. To sum up, if Superior reduces the price of product 101, its profit will increase significantly to breakeven...
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Let us assume the linear relationship between price and quantity: Qty Sold = 750,000 + [{($.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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