Gordy Corporation's Management Has Found That Every 3% Increase in the Selling

Multiple Choice

Gordy Corporation's management has found that every 3% increase in the selling price of one of the company's products leads to a 6% decrease in the product's total unit sales. The product's absorption costing unit product cost is $22.00. The variable production cost of the product is $6.80 per unit and the variable selling and administrative cost is $2.40 per unit. According to the formula in the text, the product's profit-maximizing price is closest to:

A) $17.77
B) $31.39
C) $17.61
D) $42.12