Question - Nutty Co. Gourmet Snacks currently sells their Gourmet Deluxe Gift Basket for 53% each. Nutty Co. currently holds 2B percent of the market share for high-end gift baskets. The marketing manager believes that the market share can be increased to 3B percent ifthe price is reduced to by 25%. Currently, each Gourmet Deluxe Gift Basket is earning a profit of $50. Nutmeg, the CED of Nutty Co, wants to maintain the same profit level per unit. Each year the total market for high-end gift baskets is 5,.IZHJB units.
1. How many Gourmet Deluxe Gift Baskets does Nutty Co. currently sell?
2. What is the current profit that Nutty Co. receives?
3. What is the target price per gift basket to reach the higher market share?
4. At this target price, how many Gourmet Deluxe Gift Baskets will Nutty Co. be able to sell?
5. What is the target cost per unit?
6. How much profit will Nutty Co. realize at the target price?