None The cost to manufacture an unfinished unit is$120 ($90 variable, $30 fixed). The selling priceper unit is $150. The company has the unusedproductive capacity and has determined thatunits could be finished and sold for $195 withan increase in variable costs of 40%.What is the additional net income per unit to begained by finishing the unit?a. $9.b. $30.c. $45.d. $36.

Step 1: Define Net IncomeNet income derived in accounting is defined as the residual value obtained…

Answered: The cost to manufacture an unfinished…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 7P

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