Velim Electronics manufactures electric shavers and is considering decreasing the price by $3 a unit for the coming year. With a $3 price decrease, the unit demand is expected to increase by 25%, and a high volume materials discount is expected to decrease the variable costs per unit by $2 per unit. Currently Projected Demand 50,000 units 62,500 units Selling price $60 $57 Variable costs per unit $52 $50 Would you recommend the $3 price decrease?
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