Solved: Price is 20 per unit at current sales volume unit cost, Accounting Basics

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Price is 20 per unit at current sales volume unit cost

Question - Price is $20 per unit. At current sales volume, unit cost (total cost per unit) is $15. It consists of $5 per unit of fixed costs and $10 per unit of variable costs.

Question: How much will the profit change if we sell one additional unit?

A. increase by $5

B. increase by $10

C. increase by $15

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Accounting Basics: Price is 20 per unit at current sales volume unit cost

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Accounting Basics: Price is 20 per unit at current sales volume unit cost

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