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johnpaech johnpaech
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6 years ago
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.
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
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anicidanicid
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johnpaech Author
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6 years ago
Thanks
nadiia
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You make an excellent tutor!
brina10
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2 hours ago
Brilliant ツ
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