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ProLight plans to sell 1,600 white lights that enhance indoor plant growth next year with total budgeted sales of $48,000 and estimated profit of $8,000.
ProLight plans to sell 1,600 white lights that enhance indoor plant growth next year with total budgeted sales of $48,000 and estimated profit of $8,000. Variable costs are projected to be $18.00 per unit. Customer A offers to pay $10,200 to buy 500 lights from ProLight. Total fixed costs are $12,000 per year. This offer does not affect ProLights other planned operations. How much is incremental profit associated with the offer from Customer A?
$1,200$10,200$3,200$7,000$3,000Step by Step Solution
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