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The editor of Beca magazine is considering three alternative prices for her new monthly periodical. Her estimate of price and quantity demanded are: Price Quantity

The editor of Beca magazine is considering three alternative prices for her new monthly periodical. Her estimate of price and quantity demanded are:

Price

Quantity Demanded

$7.93

24,900

$6.99

31,300

$5.94

37,000

Monthly costs of producing and delivering the magazine include $92,000 of fixed costs and variable costs of $2.20 per issue. Which price will yield the largest monthly profit? (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Price

Profit/(loss)

$7.93

$

$6.99

$

$5.94

$

A price of $enter the largest monthly profit amount in dollars rounded to 2 decimal places yields the largest monthly profit.

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