Question

EasyFind manufactures and sells golf balls. The company is conducting a price test to find a better price point. Presently their golf balls sell for $23 per dozen. Their current volume is 4,470 dozen per month. They are considering reducing their sales price by 26% per dozen

What % increase in unit sales is necessary to achieve the same level of total contribution?

Answer 1

To calculate the % increase in unit sales necessary to achieve the same level of total contribution, we need to consider the effect of the price reduction on the number of units sold.

Step-by-step explanation:

To find the % increase in unit sales necessary to achieve the same level of total contribution, we need to consider the effect of the price reduction on the number of units sold.

Currently, the golf balls are sold for $23 per dozen, and the volume is 4,470 dozen per month. If the price is reduced by 26% to $17 per dozen, we can calculate the new volume needed to achieve the same level of total contribution.

% Increase in unit sales = ((New Volume - Current Volume) / Current Volume) * 100