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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Managerial Accounting

ISBN: 978-0470578797

4th edition

Authors: James Jiambalvo

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Question Posted: May 06, 2013 06:06 AM

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