.. :Tory Company sells a single product. Troy estimates demand and costs at vari
ID: 2658763 • Letter: #
Question
..
: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
151,000
$45
$3,500,000
$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?
Units Sold
Price
Total Variable Costs
Fixed Costs
120,000
$48
$3,000,000
$1,000,000
151,000
$45
$3,500,000
$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
Explanation / Answer
Profit made if price is $45
Profit = Units Sold * Price - Total Vriable Costs - FIxed Costs = 151,000 * 45 - 3,500,000 - 1,000,000 =
2,295,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.