Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e

18. Price Setting in the
    Business World

Text © The McGraw−Hill

Companies, 2002

Price Setting in the Business World 543

c. Using the “profit analysis” column (column 2), allow

your estimate of the sale quantity to vary between

64,000 and 96,000. Prepare a table that shows, for

each quantity level, what happens to average cost per

unit and profit. Explain why average cost changes as

it does over the different quantity values.

For additional questions related to this problem, see

Exercise 18-5 in the Learning Aid for Use with Basic Mar-

keting,14th edition.