At a Price of $3 Each, SHAPE Magazine Sells 1

question 216

Multiple Choice

At a price of $3 each, SHAPE magazine sells 1.25 million copies of its magazine targeted to young women seeking a healthier lifestyle. If the price is increased to $3.25 each, only 1 million copies will be sold. Fixed costs are $1 million and unit variable costs are $0.50 per magazine. For the information provided here, what is SHAPE magazine's total revenue obtained at the higher price?

• A)$2,125,000
• B)$1,625,000
• C)$3,750,000
• D)$3,250,000

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Definitions:

Unreasonable Terms

Contract terms that are deemed excessively unfair or one-sided in favor of one party, potentially leading to legal challenges.

Standard Form Contract

A pre-prepared contract where most terms are set in advance with little opportunity for negotiation by the signatory.

Consumer Protection

Laws and regulations designed to ensure the rights of consumers, fair trade, and accurate information in the marketplace.

Charitable Donation

A gift made to a charitable organization, often tax-deductible for the donor.