Intermediate: Calculation of an optimal selling price.

A company manufactures a single product, product Y. It has documented levels of demand at certain selling prices for this product as follows:

Required:
Using a tabular approach, calculate the marginal revenues and marginal costs for product Y at the different levels of demand, and so determine the selling price at which the company profits are maximized. (10 marks)
ACCA - Financial Information for Management

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Demand Selling price per unit Cost per unit Units 48 1100 1200 46 21 1300 45 1400 42 19 2222 20