In 2013, Sunny Electronics Expects to Sell 100,000 3-D Television

Multiple Choice

In 2013, Sunny Electronics expects to sell 100,000 3-D television sets for an average price of $1,000. Expected production costs are $600 per unit. In 2014, volume is expected to increase by 10%, Inflation will increase the cost per unit by 3%, but to attract more buyers, Sunny will reduce the price to $950. In nominal dollars, expected gross profit for 2014 is

A) $45.32 million.
B) $40 million.
C) $38 million.
D) $36.52 million.