Dollar Deals sells a single product that has a unit variable cost of $9 per unit. The company's total fixed costs are $220,000. The company estimates demand at various activity levels as follows: $$\begin{array} { c c }
\text { Units Demanded } & \text { Unit Price } \
54,000 & \$ 15 \
65,000 & \$ 14 \
72,000 & \$ 13 \
82,000 & \$ 12
\end{array}$$ What price should Dollar Deals charge to maximize profits?

Question

Dollar Deals sells a single product that has a unit variable cost of $9 per unit. The company's total fixed costs are $220,000. The company estimates demand at various activity levels as follows: $$\begin{array} { c c } 
\text { Units Demanded } & \text { Unit Price } \
54,000 & \$ 15 \
65,000 & \$ 14 \
72,000 & \$ 13 \
82,000 & \$ 12
\end{array}$$ What price should Dollar Deals charge to maximize profits?

Quizplus · Accepted Answer

The Answer of Dollar Deals sells a single product that has a unit variable cost of $9 per unit. The company's total fixed costs are $220,000. The company estimates demand at various activity levels as follows: $$\begin{array} { c c } 
\text { Units Demanded } & \text { Unit Price } \
54,000 & \$ 15 \
65,000 & \$ 14 \
72,000 & \$ 13 \
82,000 & \$ 12
\end{array}$$ What price should Dollar Deals charge to maximize profits?

Dollar Deals Sells a Single Product That Has a Unit