Question
Winslow Carpet produces and sells berber carpet by the yard with a variable cost of $16 per yard. Total fixed costs are $280,000. The following
Winslow Carpet produces and sells berber carpet by the yard with a variable cost of $16 per yard. Total fixed costs are $280,000. The following chart represents the estimated demand at various price levels.
| Yards Demanded | Unit Price |
|
| 57,000 | $29 |
|
| 67,500 | $27 |
|
| 72,500 | $25 |
|
| 86,000 | $23 |
Which price will generate the largest profit for Winslow Carpets?
| A. | $25 | |
| B. | $23 | |
| C. | $29 | |
| D. | $27 |
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Accounting Multicolumn Journal
Authors: Claudia Gilbertson
10th Edition
128552845X, 9781285528458
