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Construct a contribution pay-off table

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Question - If the possible combinations of budgeted demand and selling price for product X is;

Demand (units) - Selling Price/unit

12,000 - $12.00

10,000 - $14.00

8,000 - $16.00

Variable costs are estimated to be either $8, $9 or $10 per unit.

A decision must be made on the price to be charged.

Required - Construct a contribution pay-off table based on the above information and select the best price to set based on the decision method selected.

Reference no: EM132691453

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