Johnston Company wants to double production of Product X from 1,000 units to 2,000 units. The variable manufacturing cost per unit is $10. The variable nonmanufacturing cost per unit is $20. There are no fixed costs. The selling price per unit is $50. What is the incremental cost of the proposed ?change $60,000 $50,000 O $20,000 O $10,000 O $30,000 O

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter16: Capital Structure Decisions
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Johnston Company wants to double production of Product X from 1,000
units to 2,000 units. The variable manufacturing cost per unit is $10. The
variable nonmanufacturing cost per unit is $20. There are no fixed costs. The
selling price per unit is $50. What is the incremental cost of the proposed
?change
$60,000 O
$50,000 O
$20,000 O
$10,000 O
$30,000 O
Transcribed Image Text:Johnston Company wants to double production of Product X from 1,000 units to 2,000 units. The variable manufacturing cost per unit is $10. The variable nonmanufacturing cost per unit is $20. There are no fixed costs. The selling price per unit is $50. What is the incremental cost of the proposed ?change $60,000 O $50,000 O $20,000 O $10,000 O $30,000 O
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