Total fixed costs are 5000 per year this offer doesnt

Reference no: EM13478033

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.

Reference no: EM13478033

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