ERGRADUATE BUSINESS Managerial Accounting (SU18) ALLIANCE ntent Classlist Discus

Question

ERGRADUATE BUSINESS Managerial Accounting (SU18) ALLIANCE ntent Classlist Discussions Grades Assignments & Exams Surveys Groups EXAM 2 -Quiz :00 Time Left: 1:03:32 Casey Follmer: Attempt 1 Question 19 (4 points) N Company, which sells crock pots, has provided the following information: 9 10 Selling price per unit $60 Variable cost per unit Fixed costs per month $90,000 What is the effect on net income if N Company sells an additional 3,000 units? 40 3 14 15 18 19 20 Oa) $90,000 increase O b) $180,000 increase O e) $30,000 decrease ulz Status ed ? 79

Explanation / Answer

when addittional units are sold no fixed cost is incurred contribution margin per unit ($60 -$40)= 20 Addittional units 3000 increase in income 60000 $60,000 increase - answer

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