Compute the dollar change in profitability of terra inc, Marketing Management

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Compute the dollar change in profitability of terra inc

Problem

In the last quarter, Terra Inc. sold 1914 units of hard drives. Each of the hard drives were priced at $62, on average. The CMO is considering a price change to $ 55 each and has asked the marketing analysts to compute the change in sales revenue. Traditionally, the products of Terra Inc. have exhibited an elasticity of 0.33. Compute the $ change in profitability of Terra Inc.

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