Luminous Company Sells a Product for $450 Per Unit

question 58

Multiple Choice

Luminous Company sells a product for $450 per unit. Its market share is 25 percent. The marketing manager feels that the market share can be increased to 33 percent with a reduction in price to $390. The product is currently earning a profit of $72 per unit. The president of Luminous Company feels that the $72 profit per unit must be maintained. What is the target price per unit?

• A)$378
• B)$450
• C)$318
• D)$390

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Definitions:

Cost Per Hire

A metric used to calculate the total expenses associated with recruiting and hiring a new employee.

Employee Referrals

A recruiting strategy where current employees recommend prospective candidates for job openings within the company, often incentivized through rewards.

Private Employment Agency

An organization that matches employers with job seekers for a fee.

Executive Search Firms

Companies specialized in recruiting executive-level personnel for other organizations, often for senior positions needing specific expertise.