Maker Sun Chairs Is Trying to Determine the Optimal Price $$\begin{array} { c c } \text { Unit Price } & \text { Unit Demand } \\\$ 45 & 7,200 \\\$ 44 & 7,800 \\\$ 43 & 8,400 \\\$ 42 & 8,800\end{array}$$

question 88

Multiple Choice

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: $$\begin{array} { c c } \text { Unit Price } & \text { Unit Demand } \\\$ 45 & 7,200 \\\$ 44 & 7,800 \\\$ 43 & 8,400 \\\$ 42 & 8,800\end{array}$$ How much is the contribution margin at a price of $45?

• A) $324,000
• B) $129,600
• C) $12,600
• D) $9,600

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Definitions:

Antipsychotic Drugs

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Schizophrenia

An extreme mental health condition defined by changes in reasoning, understanding, emotional responses, speech, self-conception, and behaviour.

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Antianxiety Drugs

Medications designed to reduce symptoms of anxiety by altering the chemical balance in the brain.