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Business, 07.05.2021 23:10 patrick171888

Currently, you sell 1,000 units of product Z per month at a price of $40 per unit. The variable costs are: direct materials $10/unit, direct labor $4/unit, and variable overhead $2/unit. Fixed costs are unknown. You are planning to increase the price to $50 per unit. You expect sales volume to decrease by 20% (from the original level of 1,000 units per month) after this price increase. How much will the profit change in the short term if you increase the price

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Currently, you sell 1,000 units of product Z per month at a price of $40 per unit. The variable cost...
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