Answer the following questions using the information below:
Bright Inc., manufactures table lamps and is considering raising the price by $30 a unit for the coming year. With a $30 price increase, demand is expected to fall by 2,000 units.
-Bright Inc.,has a capacity to produce 25,000 units.Due to an increase in the electricity costs,there is a sudden spike in demand by 2,000 units.If the company adopts peak-load pricing policy and charges a premium of 30% over the current sales price,what is the total contribution on the sale of additional units?
A) $190,000
B) $200,000
C) $390,000
D) $290,000
Correct Answer:
Verified
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