Palm Decor sells a single product that has variable costs of $12 per unit. The company estimates the following demand at various unit prices:
$$\begin{array} { | c | c | }
\hline \text { Units Demanded } & \text { Unit Price } \
\hline 31,000 & \$ 19 \
37,000 & 18 \
44,000 & 17 \
56,000 & 16 \
60,000 & 15\\hline
\end{array}$$
What price should Palm Decor charge to maximize profits?

Question

Palm Decor sells a single product that has variable costs of $12 per unit. The company estimates the following demand at various unit prices:
$$\begin{array} { | c | c | } 
\hline \text { Units Demanded } & \text { Unit Price } \
\hline 31,000 & \$ 19 \
37,000 & 18 \
44,000 & 17 \
56,000 & 16 \
60,000 & 15\\hline
\end{array}$$
What price should Palm Decor charge to maximize profits?

Quizplus · Accepted Answer

The Answer of Palm Decor sells a single product that has variable costs of $12 per unit. The company estimates the following demand at various unit prices:
$$\begin{array} { | c | c | } 
\hline \text { Units Demanded } & \text { Unit Price } \
\hline 31,000 & \$ 19 \
37,000 & 18 \
44,000 & 17 \
56,000 & 16 \
60,000 & 15\\hline
\end{array}$$
What price should Palm Decor charge to maximize profits?

Palm Decor Sells a Single Product That Has Variable Costs