SHAPE Magazine Is Targeted at Young Women Seeking Healthier Lifestyles

Multiple Choice

SHAPE magazine is targeted at young women seeking healthier lifestyles. At a price of $3 per copy, 1.25 million copies are sold. If the price per issue is increased to $3.25, only 1 million copies would be sold. Fixed costs are $1 million and unit variable costs are $0.50 per magazine. From the information provided here, what is SHAPE magazine's total revenue obtained at the lower $3 price?

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