Dot Company Sells a Product for $225 Per Unit

question 120

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 original cost per unit?

• A)$225
• B)$195
• C)$159
• D)$189

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Definitions:

Chemical Signals

Molecules released by cells that are used to communicate with other cells, often playing a role in the regulation of physiological processes.

Fear Center

A colloquial term often used to refer to the amygdala, a part of the brain involved in processing emotions, including fear.

Amygdala

A section of the brain that is responsible for detecting fear and preparing for emergency events.

Hypothalamus

A region of the brain below the thalamus that coordinates both the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems.