Calico Joe Fabrics sells a single product. The company estimates total fixed costs at $360,000 with demand, price, and total variable costs as follows:
$$\begin{array} {| c | c | c | }
\hline \text { Units Demanded } & \text { Unit Price } & \text { Total Variable Costs } \
\hline 7,000 & \$ 31 & \$ 1,606,000 \
83,000 & 30 & 1,826,000 \
93,000 & 29 & 2,046,000 \
103,000 & 28 & 2,266,000 \
113,000 & 27 & 2,486,000\\hline
\end{array}$$
What price should Calico Joe Fabrics charge to maximize profits?

Question

Calico Joe Fabrics sells a single product. The company estimates total fixed costs at $360,000 with demand, price, and total variable costs as follows:
$$\begin{array} {| c | c | c | } 
\hline \text { Units Demanded } & \text { Unit Price } & \text { Total Variable Costs } \
\hline 7,000 & \$ 31 & \$ 1,606,000 \
83,000 & 30 & 1,826,000 \
93,000 & 29 & 2,046,000 \
103,000 & 28 & 2,266,000 \
113,000 & 27 & 2,486,000\\hline
\end{array}$$
What price should Calico Joe Fabrics charge to maximize profits?

Quizplus · Accepted Answer

The Answer of Calico Joe Fabrics sells a single product. The company estimates total fixed costs at $360,000 with demand, price, and total variable costs as follows:
$$\begin{array} {| c | c | c | } 
\hline \text { Units Demanded } & \text { Unit Price } & \text { Total Variable Costs } \
\hline 7,000 & \$ 31 & \$ 1,606,000 \
83,000 & 30 & 1,826,000 \
93,000 & 29 & 2,046,000 \
103,000 & 28 & 2,266,000 \
113,000 & 27 & 2,486,000\\hline
\end{array}$$
What price should Calico Joe Fabrics charge to maximize profits?

Calico Joe Fabrics Sells a Single Product What Price Should Calico Joe Fabrics Charge to Maximize Profits