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A Company Sells Three Different Products

question 46

Essay

A company sells three different products.Model A costs $8 and sells for $16,Model B costs $18 and sells for $45,and Model C costs $36 and sells for $120.
Required:
Part a.Calculate the gross profit per unit for each of the three products.
Part b.Calculate the gross profit percentage for each of the three products.


Definitions:

Market Share

The percentage of an industry's total sales that is earned by a particular company over a specified time period.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.

Gas Station

A facility where gasoline (petrol) and often other fuels and automotive products are sold to motorists.

Unavailability of Substitutes

A market condition where consumers have no alternative products or services to choose from, often leading to less price sensitivity.

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