Monthly costs of producing and delivering the magazine

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

Price
Quantity Demanded
$7.87
24,500
$6.98
31,500
$5.91
36,900

Monthly costs of producing and delivering the magazine include $93,800 of fixed costs and variable costs of $2.10 per issue.
Which price will yield the largest monthly profit?

Price
Profit
$7.87
$
$6.98
$
$5.91
$

A price of $ yields the largest monthly profit.

Reference no: EM13589615

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