Gorry Company's Management Has Found That Every 7% Increase in the Selling

Multiple Choice

Gorry Company's management has found that every 7% increase in the selling price of one of the company's products leads to a 11% decrease in the product's total unit sales.The product's absorption costing unit product cost is $13.00.The variable production cost of the product is $4.00 per unit and the variable selling and administrative cost is $5.40 per unit. According to the formula in the text,the product's profit-maximizing price is closest to:

A) $22.41
B) $31.00
C) $23.60
D) $20.06