Elite Design, Inc

question 125

Multiple Choice

Elite Design, Inc. sells customized handbags. Currently, they sell 30,000 handbags annually at an average price of $79 each. They are considering adding a lower-priced line of handbags which sell
For $45 each. Elite Design estimates they can sell 12,000 of the lower-priced handbags but will sell
4,000 less of the higher-priced handbags by doing so. What is the amount of the sales that should
Be used when evaluating the addition of the lower-priced handbags?

• A) $224,000
• B) $540,000
• C) $856,000
• D) $1,234,000
• E) $1,514,000