Question
Anacaona Company is a manufacturer of a unique product that hs no direct competition. The company is considering how to price the product to maximize
Anacaona Company is a manufacturer of a unique product that hs no direct competition. The company is considering how to price the product to maximize its profits. The company's cost structure is as follows: Variable cost per unit: $20 Fixed cost per year: $500,000 He company has estimated the following demand curve for its product. At a price of $100 per unit, the company expects to sell 5,000 units per year. The company tax rate is 30% Identify the optimal price that Anacaona Company should set for its product to maximize its profits and calculate the resulting Net Income. Hint: You must use the demand function, the revenue function, the profit function.
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