Firestack Company's Management Believes That Every 5% Increase in the Selling

Multiple Choice

Firestack Company's management believes that every 5% increase in the selling price of one of the company's products results in a 13% decrease in the product's total unit sales. The variable production cost of this product is $37.50 per unit and the variable selling and administrative cost is $4.30 per unit.
The product's profit-maximizing price according to the formula in the text is closest to:

A) $46.98
B) $49.32
C) $64.34
D) $65.13