Jackson Company is trying to determine the optimal price to charge for its PUNCH model. Jackson has fixed costs of $50,000 and the PUNCH has variable costs of $12.00 per unit. Jackson has determined that the following relationships exist between price and demand:
Price Demand
$20 6,875
$19 8,800
$18 10,000
$17 11,000
What price should Jackson charge in order to maximize its profit?
a) $19
b) $20
c) $18
d) $17