Question
Swchyn, Inc. manufactures and sells guitar strings. Last year they sold 110,000 feet of guitar strings at $ 6 / foot. On average, they incurred
Swchyn, Inc. manufactures and sells guitar strings. Last year they sold 110,000 feet of guitar strings at $ 6 / foot. On average, they incurred $1.75 of variable costs per foot of guitar strings and incurred $40,000 of fixed costs every month. They pay income tax of 20% annually. They are trying to project profit in the coming year. Please answer the following questions with either Increase, Decrease, or Remain Constant.
If total sales increase to 155,000 feet, total cost per unit will _____________________.
Select one:
a. Cannot be determined
b. Decrease
c. Increase
d. Remain Constant
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