Multiple Choice Question 51

Maker Sun Chairs is trying to determine the optimal price to charge for its galvanized deck chairs. The company has total fixed costs of $120,000 and the deck chairs have a unit variable cost of $27.00 per unit. Maker Sun Chairs has determined that the following relationships exist between price and demand:

Unit Price		Unit Demand
$45		7,200
$44		7,800
$43		8,400
$42		8,800

Q; part 1 How much is the contribution margin at a price of $45? part 2 and at $44?