Sanderson sells a single product for $45 that has a variable cost of $25.
Fixed costs amount to $10 per unit when anticipated sales targets are met.
If the company sells one unit in excess of its break-even volume, profit will be:
$10.
$20.
$45.
an amount that cannot be derived based on the information presented.
an amount other than those in choices A, B, and C, but one that can be derived based on the information presented.
Which of the following would produce the largest increase in the contribution margin per unit?
A 12% increase in selling price.
A 16% decrease in selling price.
A 15% increase in variable cost.
A 18% decrease in fixed cost.
A 24% increase in the number of units sold.