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Wilkes Manufacturing sells one product with a variable unit cost of $18. The company knows that the price charged will affect demand. Fixed costs
Wilkes Manufacturing sells one product with a variable unit cost of $18. The company knows that the price charged will affect demand. Fixed costs are $265,000. If sales exceed 50,000 units, the company will need to lease additional manufacturing space and equipment at an additional cost of $30,000 per year. The following chart represents the estimated demand at various price levels: Units Demanded 25,000 50,000 75,000 100,000 Unit Price $30 $28 $25 $23 Based on this information which of the following statements is true? Selling the units at $23 per unit will generate the largest profit. Selling the units at $28 per unit will generate the largest profit. Selling the units at $30 per unit will generate the largest profit. Selling the units at $25 per unit will generate the largest profit. None of the above O O O O C
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