Question

Mango Systems believes that demand for its pet e-mouse follows a linear demand equation: Quantity =...

Mango Systems believes that demand for its pet e-mouse follows a linear demand equation:

Quantity = 40,313 - 781 * Price

Mango's variable cost to produce one pet e-mouse is $23.50. Find the maximum total contribution margin (margin per unit times quantity sold) that Mango Systems can possibly achieve on its pet e-mouse. (Rounding: penny.)

Answer was: 154,359.68

Can someone explain how?

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