Rudy Company Sells a Product for $450 Per Unit

question 28

Multiple Choice

Rudy 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 Rudy Company feels that the $72 profit per unit must be maintained.
-Refer to the figure.What is the original cost per unit?

• A)$318
• B)$378
• C)$390
• D)$450

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