Sunset Grill has budgeted the following costs for a month in which 2,000 steak dinners will be produced and sold: • Materials $6,000 Hourly labor (variable) = $8,000 • Rent (fixed) $2,000 • = Depreciation $1,200 Other fixed costs = $1,000 Each steak dinner sells for $15.00 each. How much would profit increase if 20 more dinners were sold?

Sunset Grill has budgeted the following costs for a month in which 2,000 steak dinners will be produced and sold: • Materials $6,000 Hourly labor (variable) = $8,000 • Rent (fixed) $2,000 • = Depreciation $1,200 Other fixed costs = $1,000 Each steak dinner sells for $15.00 each. How much would profit increase if 20 more dinners were sold?

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 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...

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How much would profit?
How much would profit increase?
How much would profit increase.
If 11 more dinners were sold?
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Dinner were sold ?
Lawrence Industries produces kitchen knives. The selling price is $25 per unit, and the variable costs are $10 per knife. Fixed costs per month are $6,000. If Lawrence Industries sells 30 more units beyond breakeven, how much does profit increase as a result? Answer
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