Heather Hudson makes stuffed teddy bears. Recent information for her business follows: Selling price per bear $ 26.00 Total fixed costs per month 1,430.00 Variable cost per bear 10.00 She sells 390 bears this month. Required: Suppose sales increase by 20 percent next month. Calculate the effect that increase will have on her profit.
Heather Hudson makes stuffed teddy bears. Recent information for her business follows: Selling price per bear $ 26.00 Total fixed costs per month 1,430.00 Variable cost per bear 10.00 She sells 390 bears this month. Required: Suppose sales increase by 20 percent next month. Calculate the effect that increase will have on her profit.
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 10EB: Keleher Industries manufactures pet doors and sells them directly to the consumer via their web...
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Heather Hudson makes stuffed teddy bears. Recent information for her business follows:
Selling price per bear | $ 26.00 |
---|---|
Total fixed costs per month | 1,430.00 |
Variable cost per bear | 10.00 |
She sells 390 bears this month.
Required:
Suppose sales increase by 20 percent next month. Calculate the effect that increase will have on her profit.
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