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Profit of Tory Company

Tory Company sells a single product. Troy estimates demand and costs at various activity levels as follows:
Units Sold Price Total Variable Costs Fixed Costs
120,000 $48 $3,000,000 $1,000,000
159,000 $45 $3,550,000 $1,000,000
160,000 $40 $4,000,000 $1,000,000
180,000 $35 $4,500,000 $1,000,000
200,000 $30 $5,000,000 $1,000,000
How much profit will Troy have if a price of $45 is charged?

Solution Summary

This solution computes profit of the Tory Company if a price of $45 is charged with all workings shown step-by-step in an excel file.

$2.19