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

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

Price Quantity Demanded
$7.86 24,400
$6.96 31,100
$5.86 36,200

Monthly costs of producing and delivering the magazine include $90,400 of fixed costs and variable costs of $2.10 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)
$7.86 $

$6.96 $

$5.86 $

A price of $

yields the largest monthly profit.

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