You are trying to determine the correct price for a new weekly magazine. The variable cost of printing and distributing a copy of the magazine is $0.50. You are thinking of charging from $0.50 to $1.30 per copy. The estimated weekly sales of the magazine are shown in the following table:

In addition to sales revenue from the magazine, you can charge $30 per 1,000 copies sold for each of the 20 pages of advertising in each week’s magazine. What price should you charge for the magazine?

Price $0.50 $0.90 $1.30 Demand (in millions) 2 1.2 0.3