The editor of Uli magazine is considering three alternative prices for her new monthly periodical. Her estimate of price and quantity demanded are: Price Quantity Demanded $7.91 24,900 $6.95 31,900 $5.89 36,100 Monthly costs of producing and delivering the magazine include $91,900 of fixed costs and variable costs of $2.20 per issue. Which price will yield the largest monthly profit? (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Price Profit/(loss) $7.91 $enter a dollar amount $6.95 $enter a dollar amount $5.89 $enter a dollar amount A price of ($enter) the largest monthly profit amount in dollars rounded to 2 decimal places yields the largest monthly profit.
The editor of Uli magazine is considering three alternative prices for her new monthly periodical. Her estimate of price and quantity demanded are: Price Quantity Demanded $7.91 24,900 $6.95 31,900 $5.89 36,100 Monthly costs of producing and delivering the magazine include $91,900 of fixed costs and variable costs of $2.20 per issue. Which price will yield the largest monthly profit? (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Price Profit/(loss) $7.91 $enter a dollar amount $6.95 $enter a dollar amount $5.89 $enter a dollar amount A price of ($enter) the largest monthly profit amount in dollars rounded to 2 decimal places yields the largest monthly profit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The editor of Uli magazine is considering three alternative prices for her new monthly periodical. Her estimate of price and quantity demanded are:
|
Price
|
Quantity Demanded
|
|
|---|---|---|
|
$7.91
|
24,900
|
|
|
$6.95
|
31,900
|
|
|
$5.89
|
36,100
|
Monthly costs of producing and delivering the magazine include $91,900 of fixed costs and variable costs of $2.20 per issue.
Which price will yield the largest monthly profit? (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
|
Price
|
Profit/(loss)
|
|
|---|---|---|
|
$7.91
|
$enter a dollar amount
|
|
|
$6.95
|
$enter a dollar amount
|
|
|
$5.89
|
$enter a dollar amount
|
| A price of ($enter) the largest monthly profit amount in dollars rounded to 2 decimal places yields the largest monthly profit. |
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