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What is the average selling price per steering wheel

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Motor Perfect (MP) makes and markets steering wheels for auto manufacturers. Last year MP sold 200,000 products and generated sales revenue of $10 million. The firm is changing its marketing strategy and raising selling price by $2. A decrease in unit sales of $2,000 is forecast. Total cost are $5 million annually and fixed costs amounts to $2 million.

What is the average selling price per steering wheel?

Reference no: EM132244749

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