Gorsche Company's Management Has Found That Every 3% Increase in the Selling

Multiple Choice

Gorsche Company's management has found that every 3% increase in the selling price of one of the company's products leads to a 8% decrease in the product's total unit sales. The product's absorption costing unit product cost is $11.50. The variable production cost of the product is $6.20 per unit and the variable selling and administrative cost is $1.00 per unit.
According to the formula in the text, the product's profit-maximizing price is closest to:

A) $11.15
B) $11.91
C) $19.65
D) $17.82