Reference no: EM132638544

The editor of Walla WallaPrice Quantity Demanded magazine is considering three alternative prices for her new monthly periodical. Her estimate of price and quantity demanded are:

$7.86            24,400

$6.96           31,100

$5.86          36,200

Monthly costs of producing and delivering the magazine include $90,400 of fixed costs and variable costs of $2.10 per issue.

Problem 1: Which price will yield the largest monthly profit? (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Price Profit/(loss)

$7.86 $

$6.96 $

$5.86 $