Question: Price is $20 per unit, variable costs are $16 per unit, and fixed costs are $8 per unit (at current sales volume). How much will
Price is $20 per unit, variable costs are $16 per unit, and fixed costs are $8 per unit (at current sales volume). How much will the profit change in the short term if sales volume is increased by 10 units? (the new volume is in the relevant range)
Group of answer choices
decrease by $40
not enough information
increase by $200
increase by $40
increase by $120
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