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Profit:
Question #1
The Company raises the price by 20% (with no change in its fixed cost). The new price is .
We would like to find the maximal loss in sales that leaves the company at the same profit level (iso-to stay with the same level of profit (and same level of contribution).
Each additional bottle that the company will sell above 1500 units will raise its profit by: = 24 - 8 = 16
Q P per unit Q Change DP P Change
800 $38 -60.0% $18 90%
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