Dollar Deals Sells a Single Product That Has a Unit

question 60

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: $$\begin{array} { c c } \text { Units Demanded } & \text { Unit Price } \\54,000 & \$ 15 \\65,000 & \$ 14 \\72,000 & \$ 13 \\82,000 & \$ 12\end{array}$$ What price should Dollar Deals charge to maximize profits?

• A) $15
• B) $14
• C) $13
• D) $12

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Definitions:

Cocoa-Bean Processor

A facility or machine that grinds cocoa beans into cocoa powder, essential in chocolate production.

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A market segment consisting of businesses that purchase goods and services for use in production, manufacturing, or operations.

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An organizational entity within the government structure, which could include departments, agencies, or other sub-divisions responsible for specific tasks.

Trash Collection

The process of gathering and removing waste materials from homes, businesses, and other sites to ensure cleanliness and sanitation.