Erin Hamill is the owner/operator of a tanning salon. She is considering four price levels for a
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Erin Hamill 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:
PriceQuantity Demanded
$11.00 ...................................................320
$10.00 ...................................................365
$9.00 ....................................................385
$8.00 ...................................................420
Monthly costs of providing the tanning service include $1,200 of fixed costs and variable of $2.00 per service.
Required
Which price will yield the largest monthly profit?
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