Question
Dollar Deals sells a single product that has a unit variable cost of $9 per unit. The company's total fixed costs are $220,000. The company
Dollar Deals sells a single product that has a unit variable cost of $9 per unit. The company's total fixed costs are $220,000. The company estimates demand at various activity levels as follows:
| Units Demanded | Unit Price |
| 54,000 | $15 |
| 65,000 | $14 |
| 72,000 | $13 |
| 82,000 | $12 |
What price should Dollar Deals charge to maximize profits?
| $12 | ||
| $15 | ||
| $14 | ||
| $13 |
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College Accounting Ch 1-12
Authors: Dansby
5th Edition
0763834955, 978-0763834951
