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Elementary,Middle School,High School,College,University,PHD
Teaching Since: | May 2017 |
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Questions Answered: | 66690 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
6. If management chooses to reduce its selling price to match that of a competitor, how will the break-even point be affected?
7. What is meant by the term sales mix? How does sales mix affect the calculation of the break-even point?
8. Radial Company sells two types of radial tires. The lower-priced model is guaranteed for only 40,000 miles; the higher-priced model is guaranteed for 100,000 miles. The unit contribution margin on the higher-priced tire is twice as high as that of the lower- priced tire. If the sales mix shifts so that the com- pany begins to sell more units of the lower-priced tire, explain how the company’s break-even point in units will change.
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