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value 10.00 points Heather Hudson makes stuffed teddy bears. Recent information for her business follows Selling price per be
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Answer #1

first let us know current month profit:

sales (350 bears *$35.00) $12,250
less:variable costs ($24*350) (8,400)
contribution 3,850
less:fixed costs (1,500)
net profit 2,350

now, when sales increase by 20%.

number of units =>350+20%=>420 units.

sales (420*$35) 14,700
less:variable costs (420*$24) (10,080)
contribution 4,620
less:fixed costs (1,500)
net profit 3,120

increase in profit = 3120-2350=>770

percentage = 770/ 2350

=>32.8%.

increase in profit 32.8%
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