Luminous Company Sells a Product for $450 Per Unit

question 58

Multiple Choice

Luminous 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 Luminous Company feels that the $72 profit per unit must be maintained. What is the target price per unit?

• A)$378
• B)$450
• C)$318
• D)$390

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Definitions:

LTPD

Lot Tolerance Percent Defective; the highest defect rate that can be considered acceptable during the random sampling of a lot for acceptance testing.