Use the information below to answer the following questions.
Sales Extraordinaire sells one particular photo frame. It estimates that it can sell as many frames as it produces. $\begin{array}{lr}
\text { Sales price per unit } & \$ 6.00 \
\text { Variable cost per unit } & \$ 3.00 \
\text { Fixed costs per annum } & \$ 9,000
\end{array}$
-Refer to the table above. Increasing the sales price to $8.00 and having a sales volume of 3,000 photo frames would result in:

Question

Quizplus · Accepted Answer

The profit is calculated as (Sales Price - Variable Cost) * Quantity - Fixed Costs = ($8.00 - $3.00) * 3,000 - $9,000 = $6,000.

Use the Information Below to Answer the Following Questions -Refer to the Table Above