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Currently, Mentzer Corp. makes 700 units per year. The units are sold for $200 each and each unit has $130 in variable costs. Fixed costs
Currently, Mentzer Corp. makes 700 units per year. The units are sold for $200 each and each unit has $130 in variable costs. Fixed costs are $30,000 per year. What would Mentzer Corp.'s profit be if they were able to sell 800 units per year. Assume that variable costs remain constant per unit and fixed costs remain constant in total.
- A. $26,000
- B. $74,000
- C. $56,000
- D. $130,000
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