Topic: Activity-Based Costing with solving please, thank you.

22. Another product manufactured by company A is product M. At a price P700 for product M there would be zero demand, and for every P40 reduction in the selling price the demand would increase by 100 units. The variable cost of producing a unit of product M is P60. Company A knows that if the demand equation for product M is represented by p = a - bx where p is the selling price and x is the quantity demanded at price p, then the marginal revenue (MR) for product M can be represented by MR = a - 2bx. The profit-maximizing output of product Mis: a. 100 units c. 800 units b. 700 units d. 1,600 units e. 1.750 units (cima)