Dot Company Sells a Product for $225 Per Unit

question 104

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 cost per unit?

• A)$159
• B)$195
• C)$189
• D)$225

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Definitions:

Hot Cocoa

A warm beverage made from cocoa powder, milk or water, and sugar, often enjoyed as a comforting or festive drink.

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Well-Baby Checkup

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