Dollar Deals Sells a Single Product That Has a Unit

question 75

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

• A)$15
• B)$14
• C)$13
• D)$12

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Definitions:

Imitate

The action of copying or mimicking the behaviors, actions, or traits of others.

Modeling

The process of learning behaviors by observing and imitating others.

Model's Behavior

The actions exhibited by an individual that are imitated or learned through observation by others, a key concept in social learning theory.

Repeating Behavior

The act of doing something over and over again, which may indicate a pattern, habit, or psychological condition.