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
|
|
158,000
|
$45
|
$3,540,000
|
$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?