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How much to increase revenue when price is reduced

Forums: Price, Revenue, Contribution Margin
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dovemana
 
Reply Tue 27 Sep, 2016 02:00 pm
If a firm has a contribution margin of 20% and wishes to reduce selling price by 5%, by how much must the percentage increase in revenue be to maintain the same gross profit, or in other words, not face any loss due to the price reduction?
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