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3 years ago

Lusk Corporation produces and sells 15,800 units of Product X each month.

Business

1 answer:

earnstyle [38]3 years ago

5 0

Answer:

a. decrease by $58,800 per month

Explanation:

The computation is shown below;

<u> Particulars Amount </u>

Contribution from product X $94,800 ($28 - $22) × 15,800 units

Less: Fixed cost -$108,000

Net loss avoided -$13,200

Non-avoidable fixed cost $72,000

The Total cost in case the product fall $58,800

Hence, the correct option is a.

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