Progo plans to sell 1200 carriers next year and has, Ask an Expert

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ProGo plans to sell 1,200 carriers next year and has budgeted sales of $48,000 and profits of $20,000. Variable costs are projected to be $22 per unit. Nathan Co. offers to pay $21,000 to buy 600 units from ProGo. Total fixed costs are $5,000 per year. This offer does not affect ProGo's other planned operations. The incremental revenues for this situation are:

a) $21,000.

b) $7,800.

c) $27,000.

d) $6,000.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9793209

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