Question: You are to decide the total demand for a particular product. Assume that the product you are evaluating has the total cost and total revenue

You are to decide the total demand for a particular product. Assume that the product you are evaluating has the total cost and total revenue curves pictured in Figure. Also assume that the difference between total revenue and total cost is the same at the 4,000- and 9,000- unit levels. If you had to choose between those two levels of activity as goals for total sales over the life of the product, which would you prefer?Why?

TOTAL REVENUE AND TOTAL COST CURVES Total Area 180 150 135 120 Profit 95,000 Profit Area Total Breakeven Point Sales in Units I Needed to Area Maximize Profit 0 6 8 9 10 12 Units Sold (In thousands)

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