The selling price per unit is $30,variable cost per unit $20,and fixed cost per unit is $3.When this company operates above the break-even point,the sale of one more unit will increase net profit by $7.

Question

Quizplus · Accepted Answer

The increase in net profit for selling one more unit above the break-even point is equal to the selling price per unit minus the variable cost per unit, which is $30 - $20 = $10. Fixed costs do not affect the calculation of profit per additional unit sold above the break-even point.

The Selling Price Per Unit Is $30,variable Cost Per Unit