Price 100Price

A B -5% of Selling Price Accounted for by:

Variable Cost 80 20 80

Fixed or Sunk Cost 10 10 10

Net Profit Margin 10 70 5Contribution Margin 20 80 20

Break-even sales change (%) for a:5% Price Reduction10% Price Reduction20% Price Reduction5% Price Increase10% Price Increase20% Price Increase

Price PriceA -5 B -5

Break-even % sales (Quantity) changePrice 100 95 100 95Variable Cost 80 80 20 20Fixed or Sunk Cost 10 10 10 10Break-even Sales (Q) 0.5 0.6666667 0.125 0.133333% Change in Sales NA 0.3333333 NA 0.066667

A BPrice Price

5 5

105 10580 2010 10

0.4 0.117647-0.2 -0.058824

If price reduce by 5%

Sales (Quantity) 4,000Wholesale Price (per unit) 10 9.5Revenue 40,000Varible Costs (per unit) 5.5Fixed Costs 15,000Total Contribution 18000