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

question 216

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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?

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Definitions:

Metamorphic Minerals

Minerals that have been chemically altered by heat and pressure conditions, characteristic of metamorphic rocks.

Geologic Structures

The features produced by deformation of the Earth's crust, including faults, folds, and rock layers, that reveal the history of the Earth's surface.

Temperature

A measure of the degree of heat or cold in an environment or a substance, expressed in degrees of a specified scale.

Horsts And Grabens

Landforms resulting from the stretching and fracturing of the Earth's crust, with horsts being elevated blocks and grabens being the depressed blocks between them.

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