At a Price of $3 Each, SH $\Lambda$ PE Magazine Sells 1

question 328

Multiple Choice

At a price of $3 each, SH $\Lambda$ PE magazine sells 1.25 million copies of its magazine targeted to young women seeking a healthier lifestyle.If the price per issue is increased to $3.25 each, only 1 million copies will be sold.Fixed costs are $1 million and unit variable costs are $0.50 per magazine.For the information provided here, what is SH $\Lambda$ PE magazine's total revenue obtained at the lower price?

• A)$3,750,000
• B)$3,000,000
• C)$2,125,000
• D)$1,625,000
• E)$675,000

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