Sorge Ltd are reviewing the selling prices of one of their products. It currently sells...
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Sorge Ltd are reviewing the selling prices of one of their products. It currently sells for 200 per unit and generates an annual demand of 1,000 units. Sorge Ltd have undertaken some market research and believe that for every 10 increase in selling price, demand will fall by 20 units. The variable cost of production of one unit of the product has been forecast to be 150. Required: Determine the profit maximising selling price and quantity.
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