At a Price of $3 Each, SHAPE Magazine Sells 1

Multiple Choice

At a price of $3 each, SHAPE magazine sells 1.25 million copies of its magazine targeted to young women seeking a healthier lifestyle. If the price is increased to $3.25 each, only 1 million copies will be sold. Fixed costs are $1 million and unit variable costs are $0.50 per magazine. For the information provided here, what is SHAPE magazine's total revenue obtained at the higher price?

A) $2,125,000
B) $1,625,000
C) $3,750,000
D) $3,250,000