Maker Sun Chairs Is Trying to Determine the Optimal Price $$\begin{array} { c c } \text { Unit Price } & \text { Unit Demand } \\\$ 45 & 7,200 \\\$ 44 & 7,800 \\\$ 43 & 8,400 \\\$ 42 & 8,800\end{array}$$

question 12

Multiple Choice

Maker Sun Chairs is trying to determine the optimal price to charge for its galvanized deck chairs. The company has total fixed costs of $120,000 and the deck chairs have a unit variable cost of $27.00 per unit. Maker Sun Chairs has determined that the following relationships exist between price and demand: $$\begin{array} { c c } \text { Unit Price } & \text { Unit Demand } \\\$ 45 & 7,200 \\\$ 44 & 7,800 \\\$ 43 & 8,400 \\\$ 42 & 8,800\end{array}$$ What is the anticipated revenue at a price of $44?

• A) $343,200
• B) $132,600
• C) $12,600
• D) $387,200

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Definitions:

Genital Stage

A phase in Freud's theory of psychosexual development, occurring in adolescence, where the libido is focused on the genitals and the individual develops sexual relationships.

Freudian Period

A phase in Sigmund Freud’s career or the historical period influenced by Freud’s theories and methodologies in psychoanalysis.

Puberty

The phase in human development during which adolescents undergo physical and hormonal changes that lead to sexual maturity.

Fixation

A persistent focus of the id’s pleasure-seeking energies at an earlier stage of psychosexual development, leading to unbalanced personality and behaviors.