Vision Optics is hoping to prduce a new line of glasses. the company estimates fixed costs to be $40,000 with a variable cost of $45 per unit.
A) If the selling price is lowered to $80, the company can expct to sell 2,000 units. What would be the total contribution to profit from this product at this price?
B) Vision estimates that if it offers the glasses at $100/unit, the company will sell about 1,500 uunits. Will the pricing strategy strategy of $100/ unit or $80 per unit generate a higher profit?
