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

Multiple Choice

Altona Corporation's vice president in charge of marketing believes that every 3% increase in the selling price of one of the company's products would lead to a 5% decrease in the product's total unit sales. The product's absorption costing unit product cost is $13.50. The variable production cost is $7.80 per unit and the variable selling and administrative cost is $2.30 per unit.
-The product's profit-maximizing price according to the formula in the text is closest to:

A) $31.86
B) $23.84
C) $5.43
D) $18.41