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Answer the Following Questions Using the Information Below:
Bright Inc

Question 187

Multiple Choice

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.
 Currently  Projected  Demand 20,000 units 18,000 units  Selling price $150$180 Variable costs per unit $100$100\begin{array}{lrr}&\text { Currently }&\text { Projected }\\\text { Demand } & 20,000 \text { units } & 18,000 \text { units } \\\text { Selling price } & \$ 150 & \$ 180 \\\text { Variable costs per unit } & \$ 100 & \$ 100\end{array}
-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:

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