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Answer the Following Questions Using the Information Below:
Laver Shavers

question 140

Multiple Choice

Answer the following questions using the information below:
Laver Shavers manufactures electric shavers and is considering decreasing the price by $2.50 a unit for the coming year.With a $2.50 price decrease,the unit demand is expected to increase by 25%,and a high volume materials discount is expected to decrease the variable costs per unit by $1 per unit.
 Currently  Projected  Demand 10000 units 12500 units  Selling price $51$48.50 Variable costs per unit $45$44\begin{array}{lrr}&\text { Currently } & \text { Projected } \\\text { Demand } & 10000 \text { units } & 12500 \text { units } \\\text { Selling price } & \$ 51 & \$ 48.50 \\\text { Variable costs per unit } & \$ 45 & \$ 44\end{array}
-Would you recommend the $2 price decrease?

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Definitions:

Divergent Boundary

A tectonic plate boundary where two plates are moving away from each other, leading to the creation of new crust.

Transform Boundary

A type of plate boundary where two tectonic plates slide past each other horizontally, often associated with earthquakes.

Mantle

The layer of the Earth between the crust and the outer core, composed of silicate rocks that are rich in magnesium and iron.

Melting

The process of changing from a solid to a liquid state due to an increase in temperature and/or a decrease in pressure.

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