Variable costs for Bramble Corp are 60 of sales Its selling

Variable costs for Bramble Corp. are 60% of sales. Its selling price is $180 per unit. If Bramble sells one unit more than break-even units, how much will profit increase?

Solution

B. $72

Increase in profit = Contribution margin

Profit will increase by:

= $180 - (60% * $180)

= $72