What price should be charged in order to maximize profits?
Bob’s Company sells one product with a variable cost of $5 per unit. The company is unsure what price to charge in order to maximize profits. The price charged will also affect the demand. If fixed costs are $100,000 and the following chart represents the demand at various prices, what price should be charged in order to maximize profits?
Units Sold ; ; ; ; Price
OUR PROCESS
Order
Payment
Writing
Delivery
Why Choose Us: Cost-efficiency, Plagiarism free, Money Back Guarantee, On-time Delivery, Total Сonfidentiality, 24/7 Support, 100% originality
30,000 ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; $10
40,000 ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; $9
;50,000 ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; $8
;60,000 ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; $7
Question 26 options:
A. $10
B. $9
C, $8
D. $7