Jackson Ltd has forecast annual demand for its Jumping Jack trampolines to be 5000 units at the current selling price of $200 per unit. For every $20 change in selling price it expects that demand will change by 500 units. Materials and direct labour costs of the trampolines are $120 per unit. Overheads at different volume levels are forecast to be: 2000 units: Total overheads = $210 000 4000 units: Total overheads = $300 000 6000 units: Total overheads = $390 000   Required: Calculate the selling price and volume that will maximise profits from the trampoline, and profits that will be achieved at this selling price and volume.

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