Question

Auantitative demand Analysis question

Revenue at a major cellular telephone manufacturer was $1.4 billion for the nine months ending March 2, up 97 percent over revenues for the save period last year.Management attributes the increase in revenues to a 137 percent increase in shipments, despite a 17 percent drop in the average blended selling price of its line ofphones. Given this information, is it surprising that the company’s revenue increased when it decreased the average selling price of its phones?

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