Refer to the data given in the preceding two exercises.
Required:
1. Prepare a table of Spectrum Sound’s revenue, cost, and profit relationships. For guidance, refer panel C of Exhibit 15-3.
2. Draw a graph similar to panel A of Exhibit 15-3 reflecting the data tabulated in requirement (l).
3. To narrow down the pricing decision, the St. Louis Division’ s sales manager has decided to price the CD player at one of the following prices: $800, $850, $900, $950, of $1,000. Which price do you recommend? Why?
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