Question

tion 27 yet wered Bass Pte Ltd, sells a single product in Tanzania for $782. Variable costs are 52% of the selling price, and the company has fixed costs that amount to $382,139. Current sales total 13,279 units. Each unit that Bass sells will increase profit by, to the nearest dollar: its out of 10 Remove flag Select one: • A. $375 O B. $407 OC. $378 D. $347 E $15 Clear my choice

Answer 1

Correct answer----------(A)$375

Working

Profit increase on sales at the rate of Contribution margin on each unit. The fixed cost remains same but the variable cost is incurred on each unit sold. The contribution margin is the actual amount that increase net profit. Mathematical calculations are given below.

Sales price	$     782
Less: Variable cost (782 x 52%)	$     407
Contribution margin per unit	$     375