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Tory Company sells a single product. Irby activity levels as follows: Total Variable Fixed Units Sold Price Costs Costs 120,000 $48 $3,000,000 $1,000,000 154,500 $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 How much profit will Troy have if a price of $45 is charged?

Tory Company sells a single product. Irby activity levels as follows: Total Variable Fixed Units Sold Price Costs Costs 120,000 $48 $3,000,000 $1,000,000 154,500 $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 How much profit will Troy have if a price of $45 is charged?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Tory Company sells a single product. Troy estimates demand and costs at various activity levels as follows: Total Variable Fixed Units Sold Price Costs 120,000 154,500 160,000 $48 $3,000,000 Costs $1,000,000 $45 $3,530,000 $1,000,000 $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?
Transcribed Image Text:Tory Company sells a single product. Troy estimates demand and costs at various activity levels as follows: Total Variable Fixed Units Sold Price Costs 120,000 154,500 160,000 $48 $3,000,000 Costs $1,000,000 $45 $3,530,000 $1,000,000 $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?
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