Taylor Pennington produces and sells hammocks. One day during lunch he complained to his friend Steven Green, an economist, that he was having trouble setting prices. When he raised his prices, demand went down as expected, but he could never predict how much demand would change. I understand my costs quite well, Taylor commented. I can produce hammocks for $75 each, and I incur $377,400 in fixed costs each year. I think I could manage my business much better if I had a better idea of the demand for hammocks at different prices. Steve said he would take a look at several years worth of sales data and try to estimate a demand curve for the hammocks. He came up with the following table:

Sales Price Demand

$215 41,205

$205 45,034

$195 49,223

$185 53,807

$175 58,823

$165 64,311

$155 70,316

$145 76,886

$135 84,075

$125 91,941

$115 100,548

What price can be expected to result in the highest operating income?