Question

ACB Company sells Product X for $20 per unit, but if the product is enhanced, it can be sold for $26 per unit. The enhancement process will cost $80,000 for the 10,000 units that are currently sold. If sales of Product X remain the same, identify the following relevant costs to process further: Difference in selling price

Answer 1

Difference in selling price = $60,000

Step-by-step explanation:

Given:

Sales price per unit = $20

New sales price per unit = $26

Total unit sold = 10,000 units

The difference in selling price =?

Computation of difference in selling price:

Difference in selling price = Total unit sold (New sales price per unit - Sales price per unit)

Difference in selling price = 10,000 ($26 - $20)

Difference in selling price = 10,000 ($6)

Difference in selling price = $60,000