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[SOLVED] Digby's product manager is considering lowering the price of the Dome product by $2.50

Digby's product manager is considering lowering the price of the Dome product by $2.50 and wants to know what the impact will be on the product’s contribution margin. Assuming no inventory carry costs, what will Dome's contribution margin be if the price is lowered?

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  •  34.00%
  •  31.57%
  •  29.99%
  •  32.30%



honeyd


24-04-21 | 13:42:40

New price=35-2.5
=32.5
Contribution margin =price-variable cost
=32.5-14.36-7.09
=11.05
=11.05/32.5*100
=34%

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