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Maisie's Muffins sells one product, chocolate chip muffins, at a price of $2.50 each. To ensure freshness, no inventories are maintained. Maisie's estimated costs are:

Maisie's Muffins sells one product, chocolate chip muffins, at a price of $2.50 each. To ensure freshness, no inventories are maintained. Maisie's estimated costs are:

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How much will monthly before-tax profit increase if sales increase by 150 muffins per month?

( )

$142.70

( )

$157.70

( )

$165.20

( )

$180.00

Variable Costs per Muffin Fixed Costs per Month Manufacturing Overhead Manufacturing Costs: Direct Materials Direct Labor Manufacturing Overhead $1,500 $720 $2,220 $0.65 Selling and Administrative $0.40 Total $0.25 $1.30 $0.15 $1.45 Selling and Administrative Costs: Total

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