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Your company has recently developed capabilities to produce a new model of frying pans with a revolutionary non-stick coating, called the PanX. Your company is

Your company has recently developed capabilities to produce a new model of frying pans with a revolutionary non-stick coating, called the PanX. Your company is currently producing at capacity. The marketing department has provided you with the following information about the per-unit demand for the PanX:

Price Quantity Revenue
$28 0 $0
$27 1 $27
$26 2 $52
$25 3 $75
$24 4 $96
$23 5 $115
$22 6 $132
$21 7 $147

If you dedicated all resources to the production of one good, you can produce up to 40 PanX or 20 Standard Pans. PanX costs $19.50 to produce. Standard pans can be sold for $20 and cost $14 to produce. How many units of PanX should you produce to profit maximize?

Hint: Costs to produce are variable costs. For simplicity, assume you can sell fractional units of the Standard Pan (e.g. you can sell 0.5 of a pan)

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