Dot Company Sells a Product for $225 Per Unit

question 66

Multiple Choice

Dot Company sells a product for $225 per unit. Its market share is 20 percent. The marketing manager feels that the market share can be increased to 30 percent with a reduction in price to $195. The product is currently earning a profit of $36 per unit. The president of Dot Company feels that the $36 profit per unit must be maintained. What is the target price per unit?

• A)$195
• B)$225
• C)$189
• D)$159

---

Definitions:

Fallacy

An incorrect reasoning that initially seems accurate.

Snob Appeal

A marketing or persuasion technique that targets people's desire for prestige or status, suggesting that using a product or service will elevate their social standing.

Ad Hominem

A fallacy in argumentation where the focus is on attacking the character of the person making an argument rather than addressing the argument itself.

SWOT Model

Used to analyze a company’s strengths, weaknesses, external opportunities, and threats.