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

question 42

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: $$\begin{array} { c c } \text { Unit Price } & \text { Unit Dem and } \\\$ 45 & 7,200 \\\$ 44 & 7,800 \\\$ 43 & 8,400 \\\$ 42 & 8,800\end{array}$$ 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:

Retina

The retina is a thin layer of tissue located at the back of the eye, responsible for receiving light and converting it into neural signals that the brain interprets as visual images.

Depth Perception

The ability to perceive the world in three dimensions and to judge the distance of objects.

Binocular Cue

A visual information cue that requires both eyes to provide depth perception or distance information.

Disparity

A great difference or inequality between things or people.