studentI’m working on a Accounting question and need guidance to help me study.

RoJo Ltd manufactures a range of summerhouses sold in garden centres around the UK. At the beginning of this financial year RoJo Ltd launched a new product, the ‘Glasshouse’.

RoJo Ltd follows a pricing policy of profit maximisation and at the end of the last financial year carried out market research in order to establish the profit maximisation price of the Glasshouse. The data obtained from this research is as follows: At a market price of £1,200 annual demand for the Glasshouse will be 15,000. When the price is changed to £2,000 annual demand is expected to be 11,000 Glasshouses.

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