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:

Chapter 11 Bankruptcy

A provision of the United States Bankruptcy Code that allows businesses to reorganize and restructure their debts while continuing operations.

Enterprise Resource Planning

Integrated management of main business processes, often in real time and mediated by software and technology.