At a Price of $80, Summit's Market Research Indicates That

Multiple Choice

At a price of $80, Summit's market research indicates that it can sell 60,000 units per year. Assuming Summit can reach its new target cost, how will Summit's profit at the $80 price compare to what it would have earned in the absence of the competitor's product?

A) Profit will be $75,000 higher.
B) Profit will be $75,000 lower.
C) Profit will be unaffected if Summit can reach the revised target cost.
D) None of the above.