Reference no: EM132648791

Lefola Limited is the only manufacturer of product G_Easy in the Popa Land. It has provided documented levels of demand at certain selling prices for product G_Easy which are as follows:

Price per unit               Demand Units               Total costs
7,000                            0                              3,000
6,000                            1                             5,000
5,000                            2                              8,000
4,000                            3                              12,000
3,000                            4                              17,000
2,000                            5                               23,000
1,000                             6                                 30,000

Required:

Problem 1: Using a tabular approach, calculate the marginal revenues and marginal costs for product G_Easy at the different levels of demand, and so determine the selling price at which Lefola Limited's profits are maximized.