Cvp analysis if the price is decreased


Question: Techno’s marketing research demonstrates that if they reduce their selling price by $1.46 [new selling value $12.49], their sales will rise by 15%. If they still wish to earn a profit of $106,000 next year, does this rate reduction seem like a financially wise idea? Why or why not explain your reasoning.

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Finance Basics: Cvp analysis if the price is decreased
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