Pricing decisions. Assume the marketing department of Benito Dairy estimates the following monthly demand for Mexican cheese in these four price-volume relations:

The fixed costs are $3,000 per month up to 3,000 pounds per month, then they increase to$ 5,000 per month for volumes over 3,000 pounds per month. Variable costs are $0.50 per pound. Which of these prices should Benito Dairy charge for its Mexican cheese?

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1. 5.000 pounds at $1.00 per pound 2. 4,000 pounds at $2.00 per pound 3. 3,000 pounds at $3.00 per pound 4 2.000 pounds at $4.00 per pound