Homework Answers
Answer- Profit will increase if 600 more units are sold = $4200.
Explanation- Profit on 600 more units sold = No. of units sold*Contribution margin per unit
= 600 units*$7 per unit
= $4200
Where- Contribution margin per unit = Selling price per unit – Variable expense per unit
= $12 per unit -$5 per unit
= $7 per unit
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