Practice Question 2

Precision Industries recently developed a new calculator for which it wants to determine its profit maximizing price. The company's accountant prepared a demand schedule as follows:

Price	Quantity Demanded
$22	2,000
$23	1,900
$24	1,700

Variable costs are $7 per unit with fixed costs of $15,000. In order to maximize profit, what is the selling price of each calculator?

All of the three options create the same profit

$22

$23

$24