Presently their golf balls sell for $21 per dozen. Their current volume is 5,730 dozen per...

Presently their golf balls sell for $21 per dozen. Their current volume is 5,730 dozen per month. They are considering reducing their sales price by 25% per dozen.

What will be EasyFind's new price if they choose to implement the price decrease?

*tcont = $63,030

revenues = $120,330

Solutions

Expert Solution

The current price is $ 21 per dozen.

When they decide to reduce the price by 25%,

The price reduction would be 25% of 21

which is = 0.25 * 21 = $ 5.25

Hence, new price will be 21 - 5.25 = $ 15.75

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

Year Price of Tennis Balls Quantity of Tennis Balls Price of Golf Balls Quantity of Golf...

Year Price of Tennis Balls Quantity of Tennis Balls Price of Golf Balls Quantity of Golf Balls Price of Gatorade Quantity of Gatorade 2014 $2 100 $4 100 $1 200 2015 $2 100 $6 100 $2 200 Suppose that people consume only three goods, as shown in this table: What is the percentage change in the price of each of the three goods? Using the consumer price index, compute the percentage change in the overall price level. If you were...

McGilla Golf is evaluating a new golf club. The clubs will sell for $930 per set...

McGilla Golf is evaluating a new golf club. The clubs will sell for $930 per set and have a variable cost of $415 per set. The company has spent $140,000 for a marketing study that determined the company will sell 47,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 8,800 sets of its high-priced clubs. The high-priced clubs sell at $1,430 and have variable costs of $560. The company also...

McGilla Golf is evaluating a new golf club. The clubs will sell for $875 per set...

McGilla Golf is evaluating a new golf club. The clubs will sell for $875 per set and have a variable cost of $430 per set. The company has spent $150,000 for a marketing study that determined the company will sell 60,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 12,000 sets of its high-priced clubs. The high-priced clubs sell at $1,100 and have variable costs of $620. The company will...

McGilla Golf is evaluating a new golf club. The clubs will sell for $1,000 per set...

McGilla Golf is evaluating a new golf club. The clubs will sell for $1,000 per set and have a variable cost of $450 per set. The company has spent $157,500 for a marketing study that determined the company will sell 50,500 sets per year for seven years. The marketing study also determined that the company will lose sales of 9,500 sets of its high-priced clubs. The high-priced clubs sell at $1,500 and have variable costs of $630. The company also...

McGilla Golf is evaluating a new golf club. The clubs will sell for $750 per set...

McGilla Golf is evaluating a new golf club. The clubs will sell for $750 per set and have a variable cost of $350 per set. The company has spent $145,000 for a marketing study that determined the company will sell 57,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 9,000 sets of its high-priced clubs. The high-priced clubs sell at $1,050 and have variable costs of $650. The company will...

McGilla Golf is evaluating a new golf club. The clubs will sell for $930 per set...

McGilla Golf is evaluating a new golf club. The clubs will sell for $960 per set...

McGilla Golf is evaluating a new golf club. The clubs will sell for $960 per set and have a variable cost of $430 per set. The company has spent $147,500 for a marketing study that determined the company will sell 48,500 sets per year for seven years. The marketing study also determined that the company will lose sales of 9,100 sets of its high-priced clubs. The high-priced clubs sell at $1,460 and have variable costs of $590. The company also...

The boy’s buyer purchases 10 dozen pairs of shorts at $180 per dozen, and 5 dozen...

The boy’s buyer purchases 10 dozen pairs of shorts at $180 per dozen, and 5 dozen tank tops at $72 per dozen. The target markup for the department is planned at 52%. If the shorts are priced at $32 each, what retail price must be placed on the tank tops in order to achieve the target markup goal? The answer is $11.00 I just don't know how to get there.

FairWay Golf Carts manufacturers and sells a golf carts. The carts usually sell for $8,300 per...

FairWay Golf Carts manufacturers and sells a golf carts. The carts usually sell for $8,300 per unit. The company normally sells units as quickly as manufactured and does not maintain a finished goods inventory. However, during the most recent year, the company produced 21,300 units, but only sold 19,711. A foreign customer has requested to buy the other 1,589 units for delivery on December 31 of the year current year. The offered price is $6,325 per unit for all 1,589...

Question 1 [25 Marks] The present market for golf balls is estimated at 80 000balls per...

Question 1 [25 Marks] The present market for golf balls is estimated at 80 000balls per month and market research indicates that with a selling price of R3 per golf ball, a market penetration of one third to a half can be achieved within 12 months. Your company has devised a process which will produce golf balls with a fixed cost of R97 500 per month and a variable cost of R1.50 per ball Required 2.1 Calculate the contribution margin...

Subjects