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A company produces a special new type of TV. The company has fixed costs of $451,000, and it costs $1100 to produce each TV. The
A company produces a special new type of TV. The company has fixed costs of $451,000, and it costs $1100 to produce each TV. The company projects that if it charges price of $2200 for the TV, it will be able to sell 700 TV's. If the company wants to sell 750 TV's however, it must lower the price to $1900. Assume a linear demand.
What should price should the company charge to earn a profit of $699,000?
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