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Variable costs for Abbey, Inc. are 25% of sales. Its selling price is $100 per unit. If Abbey sells one unit more than break-even units, how much will profit increase

Respuesta :

Answer:

the increase in profit is $75

Explanation:

The computation of the increase in profit is shown below:

= Selling price per unit - variable cost per unit

= $100 - 25% of $100

= $100 - $25

= $75

hence, the increase in profit is $75

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

By dividing the variable cost from the selling price the increase in profit could come

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