Mini-Case Question. As the market for this product matures, Coller may need to rethink its pricing in order to optimize profits as the market growth slows
If the objective is to optimize profits, is it a good idea for Coller Inc to decrease the price by 10% in an attempt to increase market share to 6%?
A) Yes, because sales revenues will increase by $16 million.
B) Yes, because margin per unit will increase by $200.
C) Yes, because gross profit will increase by $16 million.
D) No, because gross profit will decrease by $16 million.
E) No, because variable costs will increase by 10%.
D
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