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Determine the profit maximizing price

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Question - Shelton Manufacturing is considering three different prices for their new personal digital planner: $60; $50; and $40. Variable costs per unit are $25. Monthly demand at each price is 15,000; 25,000; and 40,000, respectively. Monthly projected fixed costs $150,000. Determine the profit maximizing price.

a. $50 per unit

b. $60 per unit

c. $40 per unit

d. $25 per unit

e. $15 per unit

Reference no: EM132756946

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