(Solved): IV. Total fixed costs of our business is 40.000$, unit sale price of our unique product is 2$ and c ...

IV. Total fixed costs of our business is 40.000$, unit sale price of our unique product is 2$ and contribution margin ratio is 80%. Under these circumstances 30.000$ profit is expected in the following period. A change in the sale price is proposed by the marketing department due to the demand elasticity in the market: cl m .0 S t a' v² d follows: tine or analytical approach a. 10% reduction in the price will increase the sale volume 20%, b. 20% reduction in the price will increase the sale volume 35%, c. 25% reduction in the price will increase the sale volume 50%, Due to the information given above, in order to increase the profit, designate if a reduction in the price is needed and if so which alternative should be preferred.