Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kri's Co sells one product with a variable cost of $5 per unit. The company is unsure what price to charge in order to maximize

Kri's Co sells one product with a variable cost of $5 per unit. The company is unsure what price to charge in order to maximize profits. The price charged will also affect the demand. If fixed costs are $100,000 and the following chart represents the demand at various prices, what price should be charge din order to maximize profits?

units sold price

30,000 $10

40,000 $9

50,000 $8

60,000 $7

A) $10

B) $9

C) $8

D) $7

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Fundamentals

Authors: Robert N. Lussier

3rd Edition

0324226063, 978-0324226065

More Books

Students also viewed these General Management questions

Question

What is meant by terms of trade? How is it determined?

Answered: 1 week ago