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Could you help me to tackle the following question?
A company is selling a product at a price of $120 per unit. At this price it is selling 200,000 units per period. It has been estimated that for every $5 increase or reduction in price, sales demand will fall or increase by 10,000 units.
At what selling price will total sales revenue per period be maximised?1. The answer is $110.
2. How can we obtain the selling price if there is no indication about variable cost?
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