Quality bakery is considering three alternative prices for, Accounting Basics

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Quality bakery is considering three alternative prices for

Problem

Quality Bakery is considering three alternative prices for home made apple pies. Annual fixed costs are $100,000 and variable costs are $2.50 per pie. What price will generate the greatest profit?

Price Quantity Demanded
$ 10.99 27,000
$ 9.50 36,000
$ 7.75 57,000

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