Wendall Company Sells Only One Product at a Regular Price

question 81

Multiple Choice

Wendall Company sells only one product at a regular price of $7.50 per unit.Variable expenses are 60% of sales,and fixed expenses are $30,000.Management has decided to decrease the selling price to $6 in hopes of increasing its volume of sales.What is the contribution margin ratio when the selling price is reduced to $6 per unit?

• A)25%
• B)40%
• C)60%
• D)75%

Identify factors influencing attitudes, including the formation and change of attitudes.

Distinguish between various psychological theories related to conformity, compliance, and obedience.

Comprehend the relationship between frustration and prejudice.

Understand the constructs of attraction and factors influencing it, including the roles of physical attractiveness and similarity.

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Definitions:

Product Modification

The process of changing or improving a product's features, design, or capabilities to meet consumer needs or to take advantage of new market opportunities.

LEGO Friends

A theme within the LEGO brand, aimed particularly at girls, that focuses on the lives and adventures of five characters in the fictional town of Heartlake City.

Market Modification Strategy

Tactics used by companies to change market perception, reach new customers, or increase product use among existing customers, often through product, price, place, and promotion adjustments.

Product Repositioning

Refers to the strategic process of changing the market's perception of a product or brand.