MG Lighting Had Sales of 500 Units at $100 Per

question 67

Multiple Choice

MG Lighting had sales of 500 units at $100 per unit last year. The marketing manager projects a 15 percent decrease in unit volume this year because a 10 percent price increase is needed to pass rising costs through to customers. Returned merchandise will represent 3.2 percent of total sales. What is MG Lighting net dollar sales projection for this year?

• A) $26,976
• B) $69,344
• C) $72,800
• D) $45,254

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Definitions:

Highest Price

The highest price refers to the maximum price at which a product, asset, or service has traded during a particular period.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good suppliers are willing to offer for sale, holding all else equal.

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, and free entry and exit from the market.

Pure Monopoly

A market structure characterized by a single seller controlling the entire market supply of a unique product, with no close substitutes.