Apple Ltd manufactures and sells a single product details of which are shown below: Current...
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Apple Ltd manufactures and sells a single product details of which are shown below: Current selling price per unit 50 Quantity demanded at this price 50,000 units Fixed costs per annum 100,000 Variable cost per unit 40 Apple recently engaged a consultant to examine the relationship between selling price and market demand. The findings suggest that each increase in price of 5.00 would result in a decrease in demand of 10,000 units. Conversely, each decrease in price of 5.00 would result in an increase in demand of 10,000 units. Calculate the optimal level of output in order to maximise profits
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