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 84

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 profit at a price of $42?

• A) $12,000
• B) $132,000
• C) $249,600
• D) $369,600

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Definitions:

Systems Theorists

Scholars who study the interconnections and interactions within and among systems in various disciplines.

Behavioral

Relating to the actions or reactions of an individual or group in response to external or internal stimuli.

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An approach to management focused on examining and integrating workflows in order to boost economic performance and elevate productivity among employees.

Self-sufficient Entity

An organization or individual that can fulfill all of its needs without external assistance.