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

question 50

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:
$$\begin{array} {| c | c | c | } \hline \text { Units Demanded } & \text { Unit Price } & \text { Total Variable Costs } \\\hline 7,000 & \$ 31 & \$ 1,606,000 \\83,000 & 30 & 1,826,000 \\93,000 & 29 & 2,046,000 \\103,000 & 28 & 2,266,000 \\113,000 & 27 & 2,486,000\\\hline\end{array}$$
What price should Calico Joe Fabrics charge to maximize profits?

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

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Definitions:

Parenchyma

A type of simple, living and frequently photosynthetic plant tissue that makes up the bulk of most non-woody structures.

Life Cycle

The series of changes in the life of an organism, including reproduction, growth, and eventually death.

Biennial

Plants or events occurring every two years, particularly in the context of plant growth cycles.

Monocot

A classification of flowering plants (angiosperms) characterized by seeds with a single embryonic leaf or cotyledon.