Reference no: EM132956140
Tory Company sells a single product. Troy estimates demand and costs at various activity levels as follows:
Units Sold Price Total Variable Cost Fixed Costs
120,000 $48 $3,000,000 $1,000,000
155,500 $45 $3,530,000 $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
Problem 1: How much profit will Troy have if a price of $45 is charged?
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