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Author Question: Velim Electronics manufactures electric shavers and is considering decreasing the price by $3 a unit ... (Read 80 times)

sheilaspns

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on: Mar 6, 2021
Velim Electronics manufactures electric shavers and is considering decreasing the price by $3 a unit for the coming year. With a $3 price decrease, the unit demand is expected to increase by 25%, and a high volume materials discount is expected to decrease the variable costs per unit by $2 per unit.

CurrentlyProjected
Demand50,000 units62,500 units
Selling price$60$57
Variable costs per unit$52$50

Would you recommend the $3 price decrease?
◦ Yes, because demand decreases.
◦ No, because the selling price decreases.
◦ Yes, because operating income increases.
◦ No, because contribution margin per unit increases.
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by sheilaspns on Mar 6, 2021

zenzy

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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sheilaspns

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review

adf223

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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