Pricing Policy

Joe is surprised that the margin is as high as 60%, and thinks that he could sell more if he reduces his price by say, 15%. He asks you to look at the effect this would have on his breakeven:

Profit Projections: Minimum Maximum
Sales
Purchases
Margin
Margin % %
Fixed Costs
Profit/ Loss
Fixed Costs
divide by Margin % %
Breakeven Sales

 

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