CalculatorScratch PadPillar Co makes decorative candles which are made from a special organic blend ofbeeswax, botanical wax and scented oils. Currently Pillar Co only sells its candles inits domestic market.The company has collected the data relating to sales of its 90 gram Honey Beecandle, which is very popular in Pillar Co's home country of Zedland. This pricinganalysis is as follows:Variable cost per unitPrice per unit($)5Quantity sold('000 units)100($)2.002.00Fixed cost per unit($)4.004.17696922.004.35882.004.552.004.768480102.005.00Pillar Co is reviewing its pricing strategies and has decided to use the informationrelating to the Honey Bee candle to assess some of the company's possible pricingdecisions.789Time Remaining 02:28:50Close All P Elag for Review25 of 34Pillar Co has developed a new product called the Bluebell candle, which has a variable cost of $3.00 perunit. If the company spends $20,000 on an advertising campaign its marketing director believesthat the demand curve for the Bluebell candle would be P = 42-0.30Q (where P = price in $ and Q =demand in thousands of units after the advertising expenditure).If Pillar Co decides to launch the advertising campaign, what price should be charged for theBluebell candle in order to maximise profits (to two decimal places)?$

For the bluebell candle product following information I provided: The company spends $20000 on an…

Time Remaining 02:28 55 □ Close All P Blag for Review Pillar Co has developed a new product called the Bluebell candle, which has a variable cost of $3.00 per unit. If the company spends $20,000 on an advertising campaign its marketing director believes that the demand curve for the Bluebell candle would be P42-0.300 (where P price in S and Qu demand in thousands of units after the advertising expenditure). If Pillar Co decides to launch the advertising campaign, what price should be charged for the Bluebell candle in order to maximise profits (to two decimal places)?

Time Remaining 02:28 55 □ Close All P Blag for Review Pillar Co has developed a new product called the Bluebell candle, which has a variable cost of $3.00 per unit. If the company spends $20,000 on an advertising campaign its marketing director believes that the demand curve for the Bluebell candle would be P42-0.300 (where P price in S and Qu demand in thousands of units after the advertising expenditure). If Pillar Co decides to launch the advertising campaign, what price should be charged for the Bluebell candle in order to maximise profits (to two decimal places)?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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