What is the incremental cost incurred if the company increases production and sales from 11,000 to 11,001 units

Marginal Cost

Explanation:

The cost for increasing the output one unit is know as Marginal Cost

It will be the sum of all variable cost related to that sale from cost of goods sold (manufacturing department) to sales commisions (sales department) to collection cost (adminsitrative deparment) It considers the company as a whole not just the manufacturing deparment.

The difference between the Marginal cost and the sales price is now as contribution margin and both are used in Managerial accounting and economics.

The internal rate of return is :

The internal rate of return is defined as the net present value of an investment project is zero.

In other words, it is the return rate of any project over its useful life.

A mechanism or method to determine the rate of return of an investment.

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