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A firm is analysing a relaxation of credit standards that is expected to increase sales from 10,000 to 12,000 units. The average selling price per
A firm is analysing a relaxation of credit standards that is expected to increase sales from 10,000 to 12,000 units. The average selling price per unit is $100, the variable cost of sales per unit is $80, and the average cost per unit is $90. What is the additional profit contribution from sales if credit standards are relaxed?
Select one:
a. $180,000
b. $160,000
c. $20,000
d. $200,000
e. $40,000
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