At a price of $3.00 each,SHAPE magazine sells 1.25 million copies of its magazine targeted to young women seeking a healthier lifestyle.If the price per issue is increased to $3.25,only 1 million copies would be sold.Fixed costs are $1 million and unit variable costs are $0.50 per magazine.From the information provided here,what is SHAPE magazine's total revenue obtained at the lower price?
A)$3,750,000
B)$3,250,000
C)$3,000,000
D)$2,125,000
E)$1,750,000

Question

Quizplus · Accepted Answer

Total revenue at the lower price can be calculated as: 
Total revenue = Price per unit x Number of units sold 
Total revenue = $3.00 x 1.25 million 
Total revenue = $3,750,000

At a Price of $3