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Jackson Company is trying to determine the optimal price to charge for its PUNCH model. Jackson has fixed costs of $50,000 and the PUNCH has
Jackson Company is trying to determine the optimal price to charge for its PUNCH model. Jackson has fixed costs of $50,000 and the PUNCH has variable costs of $12.00 per unit. Jackson has determined that the following relationships exist between price and demand:
Price | Demand |
$20 | 6,875 |
$19 | 8,800 |
$18 | 10,000 |
$17 | 11,000 |
What is the anticipated revenue for a price of $19?
$167,200 |
$137,500 |
$350,000 |
$155,000 |
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