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Sagot :
Solution :
The cost of variable manufacturing is given as = $ 89,200
Number of units = 8000 units.
Therefore, the cost of variable manufacturing per unit [tex]$=\frac{89,200}{8000}$[/tex]
= $ 11.15
Therefore for 2000 units = 2000 x 11.15
= $ 22,300
Amounts in $
Sales 30,400 (2000 x 15.20)
Less : variable manufacturing cost 22,300
Less : fixed manufacturing cost 1,680
Less : variable selling and administrative cost 3800
Profit 2620
Therefore the profit is increased by $ 2620.
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