Lansbury Manufacturing produces hair brushes. The selling price is $20 per unit and the variable costs are $8 per brush. Fixed costs per month are $4800. If Lansbury sells 30 more units beyond breakeven how much does profit increase as a result?

Question

Quizplus · Accepted Answer

The profit per unit is the selling price minus the variable cost, which is $20 - $8 = $12. Selling 30 more units beyond the breakeven point increases profit by 30 units * $12/unit = $360.

Lansbury Manufacturing Produces Hair Brushes