Jones Cola sells bottled beverages. During the past year, 41,000 bottles were produced and sold at a price of $1.20 per bottle. Variable cost per unit was $0.45 and total fixed costs were $150,000. Jones Cola would like to raise the price per bottle to $1.60, but feels that this will reduce sales to 35,000 bottles per year. What is the incremental profit associated with the price increase? $9,500 $4,100 $4,800 $10,650 $4,200

Jones Cola sells bottled beverages. During the past year, 41,000 bottles were produced and sold at a price of $1.20 per bottle. Variable cost per unit was $0.45 and total fixed costs were $150,000. Jones Cola would like to raise the price per bottle to $1.60, but feels that this will reduce sales to 35,000 bottles per year. What is the incremental profit associated with the price increase? $9,500 $4,100 $4,800 $10,650 $4,200

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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