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A company sells a single product that has variable costs of $5 per unit and the company has total fixed costs of $70,000. The company

A company sells a single product that has variable costs of $5 per unit and the company has total fixed costs of $70,000. The company estimates demand at various activity levels as follows:

Units Sold Price per unit

10,000 14.00

12,000 13.00

14,000 12.00

16,000 11.00

18,000 10.00

a. Calculate the total contribution margin at each price level

b. Which price maximizes profit?

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