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Jackson Company is trying to determine the optimal price to charge for its PUNCH model. Jackson has fixed costs of $50,000 and the PUNCH has variable costs of $12.00 per unit. Jackson has determined that the following relationships exist between price and demand:
Price Demand$20 6,875$19 8,800$18 10,000$17 11,000
What price should Jackson charge in order to maximize its profit? a) $19 b) $20 c) $18 d) $17
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