A firm is analyzing a relaxation of credit standards that is expected to increase sales 10 percent. The firm is currently selling 400 units at an average sale price per unit of $575, and the variable cost per unit is $400 at the current sales volume
The average cost per unit is $425. What is the additional profit contribution from sales if credit standards are relaxed?
A) $23,000
B) $16,000
C) $6,000
D) $7,000
D
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The Subdivision Map Act applies to
A. agricultural leases. B. two or more parcels. C. out-of-state subdivisions. D. time-shares.
A real estate broker wishes to deposit an ernest money check into his business operating account until settlement so the purchaser can earn a higher rate of interest on her funds. Should he do this?
a. yes, if the purchaser receives a comparison of available interest rates b. yes, if the broker promises to insure such funds will be available at closing c. no, these funds must be kept in a separate escrow account d. no the broker cannot guarantee a higher interest rate