Alley Corporation's Vice President in Charge of Marketing Believes That

Multiple Choice

Alley Corporation's vice president in charge of marketing believes that every 8% increase in the selling price of one of the company's products would lead to a 13% decrease in the product's total unit sales.The product's absorption costing unit product cost is $17.40.The variable production cost is $4.10 per unit and the variable selling and administrative cost is $4.80 per unit. The product's profit-maximizing price according to the formula in the text is closest to:

A) $10.73
B) $38.89
C) $9.16
D) $19.89