Carolina Products
Carolina Products sells a unique item with the following information available:
$\begin{array}{ll}
\text { Sales price } & \$ 40 \text { per unit } \
\text { Variable costs } & \$ 12 \text { per unit } \
\text { Fixed Costs } & \$ 2 \text { per unit } \
\text { Units produced and sold } & 2000
\end{array}$
-If one more unit is sold,net income will:

Question

Quizplus · Accepted Answer

The contribution margin per unit is the sales price minus variable costs, which is $40 - $12 = $28. Therefore, selling one more unit increases net income by $28.

Carolina Products Carolina Products Sells a Unique Item with the Following

Carolina Products
Carolina Products Sells a Unique Item with the Following