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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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