The publisher of a magazine gives his staff the following information:
Current price ........................ $2.00 per issue
Current sales ........... 150,000 copies per month
Current total costs ........... $450,000 per month
The publisher tells the staff, "Our costs are currently $150,000 more than our revenues each month. I propose to eliminate this problem by raising the price of the magazine to $3.00 per issue. This will result in our revenue being exactly equal to our cost." Do you agree with the publisher's analysis? Explain.