George Fine, owner of Fine Manufacturing, is considering the introduction of a new product line. George has considered factors such as costs of raw materials, new equipment, and requirements of a new production process. He estimates that the variable costs of each unit produced would be $8 and fixed costs would be $70,000.
If the selling price of the product is set at $18 per unit, Fine Manufacturing expects to sell 15,000 units. What would be the total contribution to profit from this product at this price?