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Dollar Deals Sells a Single Product That Has a Unit

Question 49

Multiple Choice

Dollar Deals sells a single product that has a unit variable cost of $9 per unit.The company's total fixed costs are $220,000.The company estimates demand at various activity levels as follows:  Units Dem anded  Unit Price 54,000$1565,000$1472,000$1382,000$12\begin{array}{cc}\text { Units Dem anded } & \text { Unit Price } \\54,000 & \$ 15 \\65,000 & \$ 14 \\72,000 & \$ 13 \\82,000 & \$ 12\end{array} What price should Dollar Deals charge to maximize profits?


A) $15
B) $14
C) $13
D) $12

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