Construct a contribution pay-off table based on information

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Reference no: EM132728101

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:

Problem 1: 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: EM132728101

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