Question - Maker Sun Chairs is trying to determine the optimal price to charge for its galvanized deck chairs. The company has total fixed costs of $104,400 and the deck chairs have a unit variable cost of $27.00 per unit. Maker Sun Chairs has determined that the following relationships exist between price and demand:
|
Unit Price
|
Unit Demand
|
|
$45
|
7,200
|
|
$44
|
7,800
|
|
$43
|
8,400
|
|
$42
|
8,800
|
What is the anticipated profit at a price of $43?
A. $256,800
B. $122,400
C. $21,600
D. $30,000