Hunter Inc. Hunter Inc. sells a unique product with the following information available:
Refer to Hunter Inc. information above. If one more unit is sold, net operating income will:

Question

Hunter Inc. Hunter Inc. sells a unique product with the following information available:
 Refer to Hunter Inc. information above. If one more unit is sold, net operating income will:

Quizplus · Accepted Answer

Based on the given information, each unit contributes $55 in profit ($150 sale price - $95 variable cost). Therefore, if one more unit is sold, the net operating income will increase by $55. Thus, the correct answer is C - increase by $60, which is the additional $55 in profit from the extra unit sold plus the original net operating income of $5.