Swashbuckler, Inc.produces buckets.The selling price is $20 per unit and the variable costs are $8 per bucket.Fixed costs per month are $4,800.If Swashbuckler sells 10 more units beyond break even, how much does profit increase as a result?

Question

Quizplus · Accepted Answer

The profit per unit is the selling price minus the variable costs, which is $20 - $8 = $12 per bucket. Selling 10 more units beyond the break-even point would increase profit by 10 units * $12/unit = $120.