33. Tepper Enterprises is planning a new product for which price and demand will be related to a certain degree, but there will be some flexibility in setting the price. For the first year, demand for each price level is as follows:

The second year, demand in each category will go up by 50%, and stay steady in the third and fourth years. In the fifth year, demand in each category will go down to the original levels, and in the sixth through tenth years, it will decrease by 10,000 per year. Tepper expects that variable costs will be $30 per unit, and that fixed costs will be $750,000 per year. Tepper hopes to earn a profit of 30% of full costs.
What price should be set for the product?

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Price Demand $30-$40 200,000 $40-$50 150,000 $50-$60 120,000