Answer the Following Questions Using the Information Below:
Bright Inc

question 100

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

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Definitions:

Independent Variable

In research, the variable that is manipulated or changed to observe its effect on a dependent variable.

Dependent Variable

In an experiment or study, the variable that is being tested and measured, often to see the impact of variations in the independent variable.

Randomization

In an experiment involves assigning each individual by chance processes.

Control Group

In experimental research, a group of subjects that does not receive the treatment being tested, used for comparison against the group that does.