Question

Based on the data in Table 1, if only 100,000 units are sold instead of 150,000, to achieve the target return of 10%, what will the selling price be?

Table 1 Breakeven Analysis Data Units sold Unit cost Target return on sales Advertising Consumer promotion Personal selling Dealer promotions Product development 150,000 $40.00 10% $1,200,000 $1,600,000 5 salespeople @ $80,000 each $1,300,000 $900,000

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