My variable costs are four dollars per unit my fixed costs are $10,000 what I ma

Question

My variable costs are four dollars per unit my fixed costs are $10,000 what I make more money selling 11,000 units at six dollars each or 10,000 units at seven dollars each? Find two correct answers Both the same 10,000 at seven dollars increases your profit by $8000 $10,000 units at $7 11,000 units at six dollars each My variable costs are four dollars per unit my fixed costs are $10,000 what I make more money selling 11,000 units at six dollars each or 10,000 units at seven dollars each? Find two correct answers Both the same 10,000 at seven dollars increases your profit by $8000 $10,000 units at $7 11,000 units at six dollars each Both the same 10,000 at seven dollars increases your profit by $8000 $10,000 units at $7 11,000 units at six dollars each

Explanation / Answer

Contribution margin at 11000 units=11000*(6-4) = $22000 Contribution margin at 10000 units=10000*(7-4) = $30000 10,000 at seven dollars increases your profit by $8000(30000-22000)

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