Which price will yield the largest monthly profit

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

Price

Quantity Demanded

$7.91

24,300

$6.96

31,000

$5.92

36,800

Monthly costs of producing and delivering the magazine include $96,500 of fixed costs and variable costs of $2.30 per issue.

Required - Which price will yield the largest monthly profit?

Reference no: EM133170206

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