Abc Ltd Is Introducing A New Product And The Estimate Of Demand At Various Level Of 3500749

ABC Ltd is introducing a new product and the estimate of demand at various level of price of unit as below. Price per unit Demand in units 30.00 400000 31.50 380000 33.00 360000 34.50 340000 36.00 315000 37.50 280000 39.00 240000 Other information are as under Direct Material 12 Per Unit Direct Wages 3 Per Unit Variable Overheads 3 Per Unit Sales Overheads 10 percent of sales Fixed Manufacturing Overheads 1440000.00 Administrative Expenses 1080000.00 Decide the price of new product from the given estimated prices to maximize the profit.

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