Homework Answers
| Calculations | Particulars | Current | Projected |
| A | Demand | 78000 | 71000 |
| B | Selling Price per unit | 8.50 | 9.25 |
| C | Incremental cost per unit | 6.80 | 6.80 |
| D = B - C | Profit per unit | 1.70 | 2.45 |
| E = A x D | Total operating profits | 132600 | 173950 |
So, Change in Operating Profit
= Projected – Current
= $ 173,950 - $ 132,600
= $ 41,350 that is, increase of $ 41,350
So, as per above discussion, option B is the correct option
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