Calico Joe Fabrics sells a single product. The company estimates total fixed costs at $360,000 with demand and unit variable costs at various activity levels as follows:

Units Demanded		Unit Price		Total Variable Costs
73,000		$31		$1,606,000
83,000		30		1,826,000
93,000		29		2,046,000
103,000		28		2,266,000
113,000		27		2,486,000

How much profit will Calico Joe Fabrics have if a price of $26 is charged and demand is 120,000?

$480,000

$2,760,000

$3,120,000

$120,000