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A manufacturer produces and sells two products, A and B . The unit variable cost is sh . 1 2 and sh . 8 for
A manufacturer produces and sells two products, A and B The unit variable cost is sh and sh for A and B respectively. A review of selling prices is in progress and it has been estimated that, for each product and increase in the selling price would result in a fall in demand of Sh units per every Sh increase in price and similarly a decrease of Sh in price would result in an increase in demand of units.
The current sales prices and sales demand are:
Price Sh Demand Units
A
B
Required:
Calculate the profitmaximizing price for reach product.
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