The board of your company discusses a possible future price increase of 20% for one of the products. The argument against the increase is a decrease in sales due to the increased price. With how many units (pieces), sales can fall, without changing the total gross margin, with the following data for your company. Current sales price per piece SEK 600 Variable costs per piece SEK 450 Current sales volume 10,000 pieces

The board of your company discusses a possible future price increase of 20% for one of the products. The argument against the increase is a decrease in sales due to the increased price. With how many units (pieces), sales can fall, without changing the total gross margin, with the following data for your company. Current sales price per piece SEK 600 Variable costs per piece SEK 450 Current sales volume 10,000 pieces

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 3.4CE

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a) Find the break-even income level of a family with a consumption function of C = 13000 + 5/6 Y, where C is the consumption and Y is the family income level. Also find the family saving at an income level of $81,000? b) A dairy cooperative sells its members butter at the constant price of $1.70 per pound. For a typical member, fixed costs are $6000 and production costs are $1.40 per pound (same as variable cost). Find the break-even quantity in pounds for a typical member. Please type out the correct answer with step by step proper explanation WITHIN 40 50 minutes. Will give you thumbs up only for the correct answer. Thank you
a) Find the break-even income level of a family with a consumption function of C = 13000 + 5/6 Y, where C is the consumption and Y is the family income level. Also find the family saving at an income level of $81,000? b) A dairy cooperative sells its members butter at the constant price of $1.70 per pound. For a typical member, fixed costs are $6000 and production costs are $1.40 per pound (same as variable cost). Find the break-even quantity in pounds for a typical member