Question
Maker Sun Chairs is trying to determine the optimal price to charge for its galvanized deck chairs. The company has total fixed costs of $120,000
Maker Sun Chairs is trying to determine the optimal price to charge for its galvanized deck chairs. The company has total fixed costs of $120,000 and the deck chairs have a unit variable cost of $27.00 per unit. Maker Sun Chairs has determined that the following relationships exist between price and demand:
Unit Price Unit Demand
$45 7,200
$44 7,800
$43 8,400
$42 8,800
What is the anticipated profit at a price of $42?
Maker Sun Chairs is trying to determine the optimal price to charge for its galvanized deck chairs. The company has total fixed costs of $120,000 and the deck chairs have a unit variable cost of $27.00 per unit. Maker Sun Chairs has determined that the following relationships exist between price and demand:
Unit Price Unit Demand
$45 7,200
$44 7,800
$43 8,400
$42 8,800
What is the anticipated profit at a price of $42?
12,000
$132,000
$249,600
$369,600
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