Table 3 Types Hardcover Price Paperback $9.99 Q $27.95 0.5 millions $1.50 AC 1 millions Option 1: profit-$12.74 Option 2: profit-$22.74 O Option 3: profit- $23.74 Option 3: profit- $21.72 O Option 2 profit -$12.735 O Option 1 profit-$13.225 $1.50 Given the information, the publisher has the following three pricing options: Option 1: Only sell the hardcover at $27.95 Option 2: Only sell the paperback at $9.99 Option 3: Sell hardcover at a price of $27.95 and paperback at a price of $9.99. Given the options, estimated quantities sold at each price and average cost, which price option would generate the most profit and how much is the profit?

Table 3 Types Hardcover Price Paperback $9.99 Q $27.95 0.5 millions $1.50 AC 1 millions Option 1: profit-$12.74 Option 2: profit-$22.74 O Option 3: profit- $23.74 Option 3: profit- $21.72 O Option 2 profit -$12.735 O Option 1 profit-$13.225 $1.50 Given the information, the publisher has the following three pricing options: Option 1: Only sell the hardcover at $27.95 Option 2: Only sell the paperback at $9.99 Option 3: Sell hardcover at a price of $27.95 and paperback at a price of $9.99. Given the options, estimated quantities sold at each price and average cost, which price option would generate the most profit and how much is the profit?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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