Loganberry Corporation Sells a Product for $400 Per Unit

question 109

Essay

Loganberry Corporation sells a product for $400 per unit. Its market share is 22 percent of the units sold. The marketing manager feels that the market share can be increased to 28 percent of the units sold with a reduction in price to $340. The product is currently earning a profit of $64 per unit. The president of Loganberry Corporation feels that his company needs to maintain the same profit level per unit. The market share consists of $4,000,000 (10,000 units).
Required:
a. How many units does Loganberry Corporation currently sell of the product?
b. What is the target price per unit?
c. What is the original cost per unit?
d. What is the target cost per unit?

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Definitions:

First Item

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A feature in presentation software that displays thumbnail versions of all slides, allowing for easy organization and rearrangement of slides.

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A presentation view that shows a single slide along with the notes that have been added for that slide, commonly used in Microsoft PowerPoint.