What is the percent break-even sales change?

        According to the calculation total break-even percentage was 1.388 (without price cut of 10%) and breakeven point is 83333. While break even percentage with price cut is 1.66% and breakeven point 90000. Thus, the total difference between percentage breakeven sales is 0.277. While point difference is 6666.6.

What is the unit break-even sales change?

        As a result of price-cut company will face change in the unit break-even sales. The calculated break-even unit sales (without price cut) is 8333.3. Break-even unit sales after price cut of 10% is calculated as 10000. In other words, company have to sell out at least 10000 units to reach the break even. Thus, the total difference is 1666.6-unit sales.

NUI had commissioned a study last month to estimate the price elasticity for widgets in its current market.  The study suggested that the price elasticity for widgets was between -1.3 and -1.5.

Do you recommend NUI proceed with the proposed price cut?  Why or why not?

        According to this analysis company should not proceed with the proposed price cut strategy because it will result in the financial loss. Actually, price elasticity is negative that describe that as a result of increase or decrease in the price of offered product demand will remain same. If demand is not increasing or decreasing then why company should offer discount or price cut? Company will get the same demand and orders in case they keep their prices high with 0% discount. But in such situation, they can enjoy additional profit.