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Einstein Motors, has a capacity to produce 35,000 electric cars. Due to a temporary subsidy announced, there is a sudden increase in demand. Einstein decides
Einstein Motors, has a capacity to produce 35,000 electric cars. Due to a temporary subsidy announced, there is a sudden increase in demand. Einstein decides to adopt peak-load pricing and charge a premium of 25% over its normal selling price of $1000. It has already accepted orders for 27,000 units at normal selling price. What is the total contribution to the company on sale of additional 8000 units if the variable cost per unit is $900?
$2,800,000
$7,200,000
$2,000,000
$8,000,000
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