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Currently the company sells 50,000 units of Product A at $30 per unit. The variable cost is $18 per unit and total fixed costs are
Currently the company sells 50,000 units of Product A at $30 per unit. The variable cost is $18 per unit and total fixed costs are $500,000. Management is considering making the following changes; increase the selling price to $40 per unit which will increase variable costs per unit to $22.80. The number of unit sales will also decrease to 39,000 and remain within the relevant range. What will the difference in profit or loss be if the change is made?
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