Answer: $4850
Step-by-step explanation:
The other information related to the question is:
Direct materials = $3.50
Direct labor = $1.10
Variable overhead = $0.45
Fixed overhead = $2.80
Total = $7.85
Based on the information given in the question, the increase in the profit will be calculated as the contribution from the 3000 extra units minus the worker's salary.
Contribution from 3000 units will be:
= (Selling price - Direct materials - Direct labor - Variable overhead) × 3000
= ($25 - $3.50 - $1.10 - $0.45) × 3000
= $19.95 × 3000
= $59850
Increase on Profit:
= $59850 - $55000
= $4850
