Excel Hardware Is Introducing a New Product on a New

Multiple Choice

Excel hardware is introducing a new product on a new product line of capacity 800 units per week at a production cost of $50 per unit. Fixed costs are $22 400 per week. Variable selling and shipping costs are estimated to be $20 per unit. Excel plan to market the new product at $110 per unit. What would be the weekly net income at 90% of the capacity?

A) $9600
B) $7200
C) $6400
D) $56 800
E) $20 800