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A company sells 500 sleds per month for $80. Variable costs are $41 per unit and fixed expenses are $3,500 per month. The company thinks that using a new material would increase sales by 70 units per month. If the new material increases variable costs by $4 per unit, the impact on net income would be a __________.

User Shiva Garg
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Answer:

the impact on contribution margin would be a $450 increase

User Michal Skop
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