The Unique Toys Company manufactures and sells toys. Currently, 300,000 units are sold per year at $12.50 per unit. Fixed costs are $880,000 per year. Variable costs are $7.00 per unit. Consider each case separately: Required: 1. A 10% increase in variable cost. 2. A 10% decrease in fixed costs, a 10% decrease in selling price, a 10% increase in variable cost per unit, and a 25% increase in units sold.

The Unique Toys Company manufactures and sells toys. Currently, 300,000 units are sold per year at $12.50 per unit. Fixed costs are $880,000 per year. Variable costs are $7.00 per unit. Consider each case separately: Required: 1. A 10% increase in variable cost. 2. A 10% decrease in fixed costs, a 10% decrease in selling price, a 10% increase in variable cost per unit, and a 25% increase in units sold.

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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