Question
Tory Company sells a single product. Troy estimates demand and costs at various activity levels as follows: Units Sold Price Total Variable Costs Fixed Costs
Tory Company sells a single product. Troy estimates demand and costs at various activity levels as follows:
| Units Sold | Price | Total Variable Costs | Fixed Costs |
| 120,000 | $48 | $3,000,000 | $1,000,000 |
| 157,500 | $45 | $3,500,000 | $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?
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Managerial Accounting
Authors: Ray Garrison, Theresa Libby, Alan Webb
9th canadian edition
1259269477, 978-1259269479, 978-1259024900
