Say variable costs are $10 per unit and the sales price is $16 per unit.If volume would triple as a result of decreasing the sales price to $9 per unit,the business should strongly consider decreasing the sales price to $9 per unit.

Question

Quizplus · Accepted Answer

Decreasing the sales price to $9 per unit would result in a loss of $1 per unit, as the variable cost is $10. Even if the volume triples, the business would incur losses on each unit sold.

Say Variable Costs Are $10 Per Unit and the Sales