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

question 214

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 per issue 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 lower price?

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

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Definitions:

Palpation

A method in physical examination where the hands are used to feel body parts to detect abnormalities.

Areolae

The pigmented areas surrounding the nipples of the breast, which can vary in size and color among individuals.

Erect Nipples

A physiological reaction where the nipples become firm and protrude due to cold, stimulation, or arousal.

Expressive Aphasia

A neurological condition characterized by difficulty in producing speech or writing, while understanding of language remains relatively intact.