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A company has fixed costs of $100,000 and variable costs of $40 per unit. Estimates of the demand for its product at different selling prices
A company has fixed costs of $100,000 and variable costs of $40 per unit. Estimates of the demand for its product at different selling prices are as follows:
Selling
Demand Price
(in units) (per unit)
20,000 $72
30,000 64
50,000 56
70,000 48
What price should be set for the product?
A. $64
B. $72
C. $56
D. $48
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