Luminous Company Sells a Product for $450 Per Unit

question 96

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 original cost per unit?

• A) $390
• B) $450
• C) $378
• D) $318

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Definitions:

Inequality

A condition or circumstance where individuals or groups have unequal access to opportunities, resources, and rights, leading to discrepancies in wealth, status, and power.

Urban Networks

Complex systems of cities and towns connected through economic, social, and infrastructural relationships, emphasizing the interconnectedness of urban areas.

Characteristics

Features or qualities that distinguish an individual, group, or thing from others.

Examples

Instances or specific cases used to illustrate a broader point or phenomenon.