Jackson Company is trying to determine the optimal price to charge for its PUNCH model. Jackson has fixed costs of $50,000 and the PUNCH has variable costs of $12.00 per unit. Jackson has determined that the following relationships exist between price and demand: Price Demand 

$20 6,875 

$19 8,800 

$18 10,000 

$17 11,000

 What price should Jackson charge in order to maximize its profit?

Answer rating: 100% (QA)

1 A Sales price X WN Contribution per unit A X 12 B 20 19 18 17 Fixed cost B 2 3 ... View the full answer