A company's income statement for FY23 contains the following information (in $ Million):

Revenue	500
COGS	300
SGA&O	100
Profit	60

It is estimated that 20% of COGS and 10% of SGA&A are Throughput Costs (vary with throughput), and the rest are Capacity Costs (fixed with respect to throughput). The throughput is 100,000 units per year.

1. What will be the increase in profit if throughput increases by 0.5%?

Answer rating: 100% (QA)

Heres how to calculate the increase in profit for a 05 increase in throughput 1 Separate Variable an... View the full answer