Nutty Co. Gourmet Snacks currently sells their Gourmet Deluxe Gift Basket for $300 each. Nutty Co. currently holds 20 percent of the market share for high-end gift baskets. The marketing manager believes that the market share can be increased to 30 percent if the price is reduced to by 25%. Currently, each Gourmet Deluxe Gift Basket is earning a profit of $50. Nutmeg, the CEO of Nutty Co., wants to maintain the same profit level per unit. Each year the total market for high-end gift baskets is 5,000 units.
Q1- 1. How many Gourmet Deluxe Gift Baskets does Nutty Co. currently sell?
Q2- 2. What is the current profit that Nutty Co. receives?
Q3- What is the target price per gift basket to reach the higher market share?