Spencer Manufacturing Company sells a product for $200 per unit.Its market share is 18 percent of the units sold.The marketing manager feels that the market share can be increased to 25 percent of the units sold with a reduction in price to $170.The product is currently earning a profit of $32 per unit.The president of Spencer Manufacturing Company feels that his company needs to maintain the same profit level per unit.The market share consists of $2,000,000 (10,000 units).
Required:

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The Answer of Spencer Manufacturing Company sells a product for $200 per unit.Its market share is 18 percent of the units sold.The marketing manager feels that the market share can be increased to 25 percent of the units sold with a reduction in price to $170.The product is currently earning a profit of $32 per unit.The president of Spencer Manufacturing Company feels that his company needs to maintain the same profit level per unit.The market share consists of $2,000,000 (10,000 units).
Required:

Spencer Manufacturing Company Sells a Product for $200 Per Unit