A 5% price decrease would require a _______ volume increase to simply maintain profit level.
A) 5%
B) 10%
C) 15%
D) 17.5%
E) 20%

Question

Quizplus · Accepted Answer

A 5% price decrease requires a 17.5% volume increase to maintain the same profit level, assuming the original profit margin was 25%. This is calculated using the formula: required volume increase (%) = (price decrease %) / (1 - original profit margin).

A 5% Price Decrease Would Require a _______ Volume Increase