Lansbury Manufacturing produces hair brushes. The selling price is $20 per unit and the variable costs are $8 per brush. Fixed costs per month are $4,800. If Lansbury sells 25 more units beyond breakeven, how much does profit increase as a result? A)$1,000 B) $200 C) $300 D) $500
Lansbury Manufacturing produces hair brushes. The selling price is $20 per unit and the variable costs are $8 per brush. Fixed costs per month are $4,800. If Lansbury sells 25 more units beyond breakeven, how much does profit increase as a result? A)$1,000 B) $200 C) $300 D) $500
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 20E
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Transcribed Image Text:Lansbury Manufacturing produces hair brushes. The selling
price is $20 per unit and the variable costs are $8 per brush.
Fixed costs per month are $4,800. If Lansbury sells 25 more
units beyond breakeven, how much does profit increase as a
result?
A)$1,000
B) $200
C) $300
D) $500
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