Baldwin's product manager is considering lowering the price of the buzz product by $2.50 and wants to know what the impact will

Question

4 years ago

14

Baldwin's product manager is considering lowering the price of the buzz product by $2.50 and wants to know what the impact will

be on the product’s contribution margin. assuming no inventory carry costs, what will buzz's contribution margin be if the price is lowered?

Business

1 answer:

Liono4ka [1.6K] · Answer 1 · 2021-12-07T17:57:07+03:00

Liono4ka [1.6K]4 years ago

3 0

<span>Buzz's contribution margin will be 34% if the price is lowered.
</span>
Old Price - 2.5 = 32.5
32.5-(14.36MC+7.09LC) = 11.05
11.05/32.5 =.34
.34 = 34%