Tory Company sells a single product. Troy estimates demand and costs at various activity levels as follows:

How much profit will Troy have if a price of $45 is charged?

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Units Sold Price Total Variable Costs $48 $45 $40 120,000 145,000 160,000 180,000 200,000 $35 $30 $3,000,000 $3,510,000 $4,000,000 $4,500,000 $5,000,000 Fixed Costs $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 Units Sold Price Total Variable Costs $48 $45 $40 120,000 145,000 160,000 180,000 200,000 $35 $30 $3,000,000 $3,510,000 $4,000,000 $4,500,000 $5,000,000 Fixed Costs $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000

Answer rating: 100% (QA)

Profit Sales Costs Fixed cos... View the full answer