Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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

Price

Quantity Demanded

$7.94

24,700

$6.95

31,800

$5.93

36,700

Monthly costs of producing and delivering the magazine include $94,600 of fixed costs and variable costs of $2.40 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)

$7.94

$enter a dollar amount

$6.95

$enter a dollar amount

$5.93

$enter a dollar amount

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).)

A price of $ yields the largest monthly profit.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

5. Develop four different strategies for resolving group conflict

Answered: 1 week ago

Question

d. What language(s) did they speak?

Answered: 1 week ago