Palm Decor Sells a Single Product That Has Variable Costs

question 118

Multiple Choice

Palm Decor sells a single product that has variable costs of $12 per unit.The company estimates the following demand at various unit prices: $$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Units } \\\text { Dem anded }\end{array} & \text { Unit Price } \\\hline 31,000 & \$ 19 \\37,000 & 18 \\44,000 & 17 \\56,000 & 16 \\60,000 & 15\\\hline\end{array}$$ What price should Palm Decor charge to maximize profits?

• A)$19
• B)$18
• C)$17
• D)$16

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Definitions:

Written Amount

The numerical representation of value or money in written form within a document.

Certificate of Deposit

A bank-issued financial instrument that offers a fixed interest rate over a specified period of time.

Note

A written promise to pay a specified amount of money at a given time or on demand.

Distinguish

To recognize or treat as different in some respect due to distinct characteristics or features.