Calculating Maximum Profit for a Private Provider
A private company is considering providing a new streaming music channel. The table below shows the projected number of subscribers the company can attract at different monthly price points. The total fixed cost to produce and host the channel is $50,000 per month. Based on this data, what is the profit-maximizing price for the channel, and what is the maximum monthly profit the company can earn?
| Price per Month | Number of Subscribers |
|---|---|
| $12 | 4,000 |
| $10 | 6,000 |
| $8 | 9,000 |
| $6 | 13,000 |
| $4 | 15,000 |
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