How should the cars be priced to maximize profits

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Reference no: EM13189016

An automobile manufacturer finds that 80,000 cars can be sold if each is priced at $12,000. However, the number sold increases by 25 for every $2 decrease in the price. The manufacturer has fixed costs of $45,000,000; in addition, it costs $5,500 to produce each car. How should the cars be priced to maximize profits?

Reference no: EM13189016

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