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Calico Joe Fabrics Sells a Single Product What Price Should Calico Joe Fabrics Charge to Maximize Profits

Question 60

Multiple Choice

Calico Joe Fabrics sells a single product.The company estimates total fixed costs at $360,000 with demand, price, and total variable costs as follows:  Units  Demanded  Unit  Price  Total Variable  Costs 73,000$31$1,606,00083,000301,826,00093,000292,046,000103,000282,266,000113,000272,486,000\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Units } \\\text { Demanded }\end{array} & \begin{array} { c } \text { Unit } \\\text { Price }\end{array} & \begin{array} { c } \text { Total Variable } \\\text { Costs }\end{array} \\\hline 73,000 & \$ 31 & \$ 1,606,000 \\83,000 & 30 & 1,826,000 \\93,000 & 29 & 2,046,000 \\103,000 & 28 & 2,266,000 \\113,000 & 27 & 2,486,000\\\hline\end{array} What price should Calico Joe Fabrics charge to maximize profits?


A) $31
B) $30
C) $29
D) $28
E) $27

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