Managerial Economics 13th Edition by James McGuigan,Charles Moyer,Frederick Harris

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Polo Golf Shirt Pricing
The setting is a Ralph Lauren outlet store, and the product line is Polo golf shirts. A product manager and the General Manager for Outlet Sales are analyzing the discounted price to be offered at the outlet stores. Let's work through the decision at the level of one color of golf shirts sold per outlet store per day. The decision being made is how low a price to select at the start of any given day to generate sales at that price throughout the day. The demand, revenue, and variable cost information is collected on the following spreadsheet:

What is the change in total revenue from lowering the price to sell seven rather than six shirts in each color each day In what sense is the decision to sell this seventh shirt a "break point"