The answer to this problem for profit is 2,172,500, can someone please explain h

Question

The answer to this problem for profit is 2,172,500, can someone please explain how each calculation was done? Tory Company sells a single product. Troy estimates demand and costs at various activity levels as follows:

Units Sold Price Total Variable Costs Fixed Costs

120,000 $48 $3,000,000 $1,000,000

148,500 $45 $3,510,000 $1,000,000

160,000 $40 $4,000,000 $1,000,000

180,000 $35 $4,500,000 $1,000,000

200,000 $30 $5,000,000 $1,000,000

How much profit will Troy have if a price of $45 is charged? Answer 2,172, 500

Total Variable Costs/ Units Sold = Variable Cost Per Unit Price per unit – Variable Cost per unit = Contribution margin per Unit per Contribution Margin per Unit ^ Units Sold = Total Contribution Margin Profit = Total Contribution Margin – Fixed Costs

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount if a price of $45 is charged then below would be the Scenario 148,500 $45 $3,510,000 $1,000,000 Units Sold           148,500.00 Selling price per unit                      45.00 Sales revenue = 148,500 *45       6,682,500.00 Less Variable Expenses     (3,510,000.00) Contribution Margin = 6682,500 - 3510,000       3,172,500.00 Fixed cost     (1,000,000.00) Net operating income = 3172,500 - 1000,000       2,172,500.00

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