14. Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of...

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14. Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of $50, sales volume is 600 units. If

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Answer 1

Answer #1

	particulars	when sale 600 units	when sale 660 units
	sales revenue	30000	30360
less:-	variable cost	12000	13200
	contribution	18000	17160

from the above table,we can see that the defference between contribution at two situation is $840 .

we know that contribution minus fixed cost is profit,and fixed will be same at both the situation,hence we can conclude that defference in contribution will be the change in profit.hence the answer is decrease by $840.

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Answer 2

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