Assume the following demand curve: Q = 50,400 – 1,200(P). Variable costs are estimated to be...
Assume the following demand curve: Q = 50,400 – 1,200(P). Variable costs are estimated to be $25.18. Calculate total contribution margin at the optimal price. Round your answer to the nearest dollar.
Homework Answers
Q = 50,400 - 1200 (P)
Variable costs are estimated to be $25.18
Contribution margin = 50,400 - 1,200 * ($25.18)
Contribution margin = 50,400 - $30,216
Contribution margin = $20,184
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