A company produces and sells 2,000 units of finished goods and incurs $60,000 of fixed costs annually.

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A company produces and sells 2,000 units of finished goods and incurs $60,000 of fixed costs annually. The contribution margin is $60 per unit, and variable cost is $40 per unit.

If the company expects sales quantities to increase by 10% next year, the operating profit will be?

Related Book For answer-question

Managerial accounting

ISBN: 978-0471467854

1st edition

Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin

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Posted Date: May 19, 2023 03:04 AM

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A company produces and sells 2,000 units of finished goods and incurs $60,000 of fixed costs annually.

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Expert Answer:

To calculate the operating profit for next year we need to consider the increase in sales quantities and the corresponding increase in costs Given Cur... View the full answer

Managerial accounting

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