The selling price per unit is $25,variable cost per unit $15,and fixed cost per unit is $4.When this company operates above the breakeven point,the sale of one more unit will increase net income by $6.

Question

Quizplus · Accepted Answer

The sale of one more unit above the breakeven point increases net income by the contribution margin, which is the selling price minus the variable cost ($25 - $15 = $10), not $6.

The Selling Price Per Unit Is $25,variable Cost Per Unit