Refer to Hunter Inc. information below.
Hunter Inc.
Hunter Inc. sells a unique product with the following information available:
$\begin{array}{ll}
\text { Sales price } & \$ 85 \text { per unit } \
\text { Variable costs } & \$ 25 \text { per unit } \
\text { Fixed Costs } & \$ 10000 \
\text { Units produced and sold } & 1250
\end{array}$
-If one more unit is sold,net income will:

Question

Quizplus · Accepted Answer

The net income increases by $60 for each additional unit sold because the contribution margin per unit is calculated as sales price per unit ($85) minus variable costs per unit ($25), which equals $60. Selling one more unit increases net income by this contribution margin amount.

Refer to Hunter Inc -If One More Unit Is Sold,net Income Will: A) Decrease

Refer to Hunter Inc -If One More Unit Is Sold,net Income Will:
A) Decrease