Rosetone Retail Sells One Product with a Variable Cost of $3.50

question 55

Multiple Choice

Rosetone Retail sells one product with a variable cost of $3.50 per unit.The demand at different prices to be charged is shown below: $$\begin{array} { c c } \text { Units Dem anded } &\text { Unit Price } \\10,000 & \$ 9 \\15,000 & \$ 8 \\20,000 & \$ 7 \\25,000 & \$ 6\end{array}$$ If fixed costs are $42,000, what price should Rosetone charge in order to maximize profits?

• A)$9
• B)$8
• C)$7
• D)$6

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Definitions:

Grocery Store

A retail store that primarily sells food, both fresh and packaged, along with household items and other consumables.

Business Ecosystem

A network of interlinked companies, including suppliers, distributors, customers, competitors, government agencies, and so on, which produces and delivers a particular product or service through competition and cooperation.

Cooperation

The process of working together towards common goals or interests, often resulting in mutual benefits.

Market Synergy

The increased effectiveness or improved outcomes resulting from the cooperative interaction or integration of market efforts or entities.