A new product was manufactured by Anamika Ltd. and was placed for sale in three markets. Three prices were selected for testing each market. From the following informations, calculate the price to give maximum profitability.

Selected Price p.u. Rs. 8 Rs. 12 Rs. 16 Estimated Sales—Unit Variables Costs—

Production Rs. 2,000 Rs. 1,500 Rs. 1,000 Selling Rs. 300 Rs. 200 Rs. 150 Traceable Fixed Cost Rs. 600 Rs. 500 Rs. 500

[Ans.: Profit Rs. 1,900; 2,600; 1,550]