Question 15

A firm sells mid-range snowboards and estimates its demand curve to be Q = 14,200 31(P). Variable costs are $268. At what price does the firm's total contribution margin equal zero?

Question 16

The Pampered Pooch sells high-end pet furniture, specializing in small breed dogs. The most popular item is the memory foam dog bed, with the following demand curve: Q = 20,400 211(P). While expensive, the bed comes with a washable cover and free shipping. Variable costs run at $47. At what quantity sold will total contribution margin be maximized? Round your answer to the nearest dog bed.