|
Title: Suppose that if GSI drops the price on the Glucoscan 3000 immediately, it can increase sales over ... Post by: johnpaech on Nov 19, 2017 Suppose that if GSI drops the price on the Glucoscan 3000 immediately, it can increase sales over the next year by 30% to 130,000 units. Also suppose that for each Glucoscan monitor sold, GSI expects additional sales of $100 per year on glucose testing strips and these strips have a gross profit margin of 75%. Considering the increase in the sale of testing strips, the incremental impact of this price drop on the firms EBIT is closest to:
A) a decline of 1.5 million. B) a decline of 0.7 million. C) an increase of 0.7 million. D) an increase of 1.5 million. Title: Re: Suppose that if GSI drops the price on the Glucoscan 3000 immediately, it can increase sales ... Post by: anicid on Nov 19, 2017 Content hidden
|