Question 9

A company produces a special new type of TV. The company has fixed costs of

$458,000,

and it costs

$1000

to produce each TV. The company projects that if it charges a price of

$2400

for the TV, it will be able to sell

850

TVs. If the company wants to sell

900

TVs, however, it must

lower the price to

$2100.

Assume a linear demand.

What price should the company charge to earn a profit of

$1,232,000?