Question

asyFind manufactures and sells golf balls. The company is conducting a price test to find a better price point. Presently their golf balls sell for $21 per dozen. Their current volume is 4,250 dozen per month. They are considering reducing their sales price by 24% per dozen. What % increase in unit sales is necessary to achieve the same level of total contribution?

Answer 1

%variation= 31.58% increase

Step-by-step explanation:

Giving the following information:

Selling price per dozen= $21

Sales in units= 4,250

They are considering reducing their sales price by 24% per dozen.

First, we need to determine the actual total contribution:

Total contribution= 21*4,250= $89,250

Now, with the new selling price, the percentage variation in sales units:

Selling price= 21*0.76= $15.96

89,250= 15.96*units

5,592= units

Percentage:

%variation= [(5,592/4,250) - 1]*100= 31.58%