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Felici6086
12.11.2020 •
Business
Variable costs for Coronado Industries are 30% of sales. Its selling price is $120 per unit. If Coronado sells one unit more than break-even units, how much will profit increase?a. $84 b. $36 c. $72 d. $400
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Ответ:
Income will increase by $84.
Explanation:
The break-even point is the number of units required to cover the fixed costs. Net income is zero.
First, we need to calculate the unitary variable cost:
Unitary variable cost= 120*0.3= $36
Now, the unitary contribution margin:
unitary contribution margin= 120 - 36
unitary contribution margin= $84
Income will increase by $84.
Ответ:
false
its right answer