Answer:
$9,000
Explanation:
Profit = Total revenue - Total cost
Total cost = Total fixed cost + Total variable cost
Fixed cost = $40,000
Variable costs = variable cost per unit × total output = $4 × 10,000 = $40,000
Total cost = $40,000 + $40,000 = $80,000
Total revenue = price × output = $10 × 10,000 = $100,000
Profit = $100,000 - $80,000 = $20,000
If sales increases by 1500, output would be 11,500
Total variable cost = 11500 × $4 = $46,000
Total cost = $40,000 + $46,000 = $86,000
Revenue = $10 x 11500 = $115,000
Profit = $115,000 - $86,000 = $29,000
Increase in profit = $29,000 - $20,000 = $9,000
I hope my answer helps you
