able costs are $4 per unit. How m if sales volume is increased by

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs
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Price is $5 per unit, fixed costs are $2 per unit (at current sales volume), and
variable costs are $4 per unit. How much will the profit change in the short
term if sales volume is increased by 10 units? (the new volume is in the
relevant range)
increase by $50
decrease by $10
increase by $10
not enough information
increase by $30
Transcribed Image Text:Price is $5 per unit, fixed costs are $2 per unit (at current sales volume), and variable costs are $4 per unit. How much will the profit change in the short term if sales volume is increased by 10 units? (the new volume is in the relevant range) increase by $50 decrease by $10 increase by $10 not enough information increase by $30
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