c ltd has developed a new product which is about to be launched on to the market. The variable cost of selling the product is £12 per unit. The marketing department has estimated that the sales price of £20, annual demand would be 10,000 units.

However, if the sales price is set above £20, sales demand would fall by 5oo units for each 50p increase above £20. Similarly, if the price is set below £20, demand would increase by 500 units for each 50p stepped reduction in price below £20.

required
determine the price which would maximise c ltd's profit in the next year.