Winslow Carpet produces and sells berber carpet by the yard with a variable cost of $16 per yard. Total fixed costs are $280,000. The following chart represents the estimated demand at various price levels. $$\begin{array} { c c }
\text { Yards Demanded } & \text { Unit Price } \
57,000 & \$ 25 \
67,500 & \$ 24 \
72,500 & \$ 23 \
86,000 & \$ 21
\end{array}$$ Which price will generate the largest profit for Winslow Carpets?

Question

Winslow Carpet produces and sells berber carpet by the yard with a variable cost of $16 per yard. Total fixed costs are $280,000. The following chart represents the estimated demand at various price levels. $$\begin{array} { c c } 
\text { Yards Demanded } & \text { Unit Price } \
57,000 & \$ 25 \
67,500 & \$ 24 \
72,500 & \$ 23 \
86,000 & \$ 21
\end{array}$$ Which price will generate the largest profit for Winslow Carpets?

Quizplus · Accepted Answer

The Answer of Winslow Carpet produces and sells berber carpet by the yard with a variable cost of $16 per yard. Total fixed costs are $280,000. The following chart represents the estimated demand at various price levels. $$\begin{array} { c c } 
\text { Yards Demanded } & \text { Unit Price } \
57,000 & \$ 25 \
67,500 & \$ 24 \
72,500 & \$ 23 \
86,000 & \$ 21
\end{array}$$ Which price will generate the largest profit for Winslow Carpets?

Winslow Carpet Produces and Sells Berber Carpet by the Yard