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Right Air Supply Sells a Specialized Air Filter That Has

Question 48

Multiple Choice

Right Air Supply sells a specialized air filter that has a variable cost of $10 each.Fixed costs are estimated to be $700,000 across all levels of sales shown below:  Units Dem anded  Unit Price 80,000$3590,000$33100,000$31110,000$30120,000$28\begin{array}{cc}\text { Units Dem anded } & \text { Unit Price } \\\hline 80,000 & \$ 35 \\90,000 & \$ 33 \\100,000 & \$ 31 \\110,000 & \$ 30 \\120,000 & \$ 28\end{array} What price should Right Air Supply charge to maximize revenues?


A) $35
B) $33
C) $31
D) $28

Correct Answer:

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