Explore BrainMass

Explore BrainMass

    What is the target price per unit?

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Travis Corporation sells a product for $100 per unit. Its market share is 32 percent. The market share can be increased to 40 percent with a reduction in price to $87. The product is currently earning a profit of $23 per unit. The president of Travis Corporation feels that the company needs to maintain the same profit level per unit. The total market consists of $1,000,000 (10,000 units). What is the target price per unit?

    © BrainMass Inc. brainmass.com June 4, 2020, 2:52 am ad1c9bdddf
    https://brainmass.com/business/accounting/what-is-the-target-price-per-unit-485224

    Solution Preview

    The target price per unit is the reduction in price - the target price per ...

    Solution Summary

    This solution provides the correct answer with supporting calculations to determine the target price per unit for Travis Corporation.

    $2.19

    ADVERTISEMENT