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    What is the target price per unit?

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    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?

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    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.