Business, 29.08.2020 18:01 starreee

Jennifer’s Pineapple Inc. was making $12 Million in sales, but due to strong competition from Coconut Co. she decided to drop all prices by 10%. Her contribution margin was 50%. Assume no change in Jennifer’s internal costs per unit. What new sales revenue would be necessary to break even (that is, maintain the current total contribution) on this 10 percent price reduction?

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Jennifer’s Pineapple Inc. was making $12 Million in sales, but due to strong competition from Coconu...