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

The editor of Kokomo 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 $

yields the largest monthly profit.

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