Carry All plans to sell 1,300 carriers nex year and has budgeted sales of $46,00

Question

Carry All plans to sell 1,300 carriers nex year and has budgeted sales of $46,000 and profits of $22,000 variable costs are projected to be $20 per unit. Michae co offers to pay 21,700 to buy 650 units form Carry All. The total fixed costs are $7,000 per year. This does not affect Carry All's other planned operations. The incremental revenues for this situation are Carry All plans to sell 1,300 carriers nex year and has budgeted sales of $46,000 and profits of $22,000 variable costs are projected to be $20 per unit. Michae co offers to pay 21,700 to buy 650 units form Carry All. The total fixed costs are $7,000 per year. This does not affect Carry All's other planned operations. The incremental revenues for this situation are

Explanation / Answer

Sale price of Additional Units 21700 Variable Cost of Additional Units 13000 Increamental Revenues 8700

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