Warvel Corporation's Management Has Found That Every 5% Increase in the Selling

Multiple Choice

Warvel Corporation's management has found that every 5% increase in the selling price of one of the company's products leads to an 8% decrease in the product's total unit sales. The variable production cost of the product is $18.00 per unit and the variable selling and administrative cost is $12.00 per unit. According to the formula in the text, the product's profit-maximizing price is closest to:

A) $63.08
B) $72.31
C) $96.41
D) $58.67