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wddwdw wddwdw
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Posts: 337
5 years ago
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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wrote...
5 years ago
 A
Explanation:  A) Expected selling price = $150 + ($150  30%) = $195
Total contribution from sale of additional units = 2,000  ($195  $100) = $190,000.
wddwdw Author
wrote...
5 years ago
I'm still confused, but thanks for answering correctly
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