Rudy Company sells a product for £450 per unit. Its market share is 25 percent. The marketing manager feels that the market share can be increased to 33 percent with a reduction in price to £390. The product is currently earning a profit of £72 per unit. The president of Rudy Company feels that the £72 profit per unit must be maintained. What is the original cost per unit?
A) £390
B) £450
C) £318
D) £378

Question

Quizplus · Accepted Answer

The Answer of Rudy Company sells a product for £450 per unit. Its market share is 25 percent. The marketing manager feels that the market share can be increased to 33 percent with a reduction in price to £390. The product is currently earning a profit of £72 per unit. The president of Rudy Company feels that the £72 profit per unit must be maintained. What is the original cost per unit?
A) £390
B) £450
C) £318
D) £378

Rudy Company Sells a Product for £450 Per Unit