Bright Inc., manufactures table lamps and is considering raising the price by $30 a unit...
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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 2300 units. Demand Selling price Variable costs per unit Currently 23,000 units $170 $120 Projected 20,700 units $200 $120 Bright Inc., has a capacity to produce 28,300 units. Due to an increase in the electricity costs, there is a sudden spike in demand by 2300 units. If the company adopts peak- load pricing policy and charges a premium of 10% over the current sales price, what is the total contribution on the sale of additional units
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