Provide correct answer Accounting question Lansbury Manufacturing produces hair brushes. The sellingprice is $20 per unit and the variable costs are $8 per brush.Fixed costs per month are $4,800. If Lansbury sells 25 moreunits beyond breakeven, how much does profit increase as aresult?A)$1,000B) $200C) $300D) $500

Key TermsSelling Price: This is how much Lansbury charges for each hairbrush ($20).Variable Costs:…

Answered: Lansbury Manufacturing produces hair…

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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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