Monthly costs of providing the tanning service include 2500

Reference no: EM13602674

Betty Boulder is the owner/operator of a tanning salon. She is considering four price levels for a weekly tanning pass. Her estimate of price and quantity demanded are:

Price Quantity Demanded
$14.00 310
$12.00 380
$10.00 420
$7.00 530

Monthly costs of providing the tanning service include $2,500 of fixed costs and variable costs of $2.50 per service. Which price will yield the largest monthly profit?

Reference no: EM13602674

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