Discussion:
A company produces a walkie-talkie communications device for use in industrial settings. The fixed cost (CF) is $60,000 per month, and the variable cost (CV) is 85 per unit. The selling price per unit is P = $165 - 0.016(D), in which D is the demand or number of units sold. Determine the optimal volume for this product; that is, the value of demand D at which profit is maximized.