Solved: How much is their incremental profit or loss if long boards, Accounting Basics

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How much is their incremental profit or loss if long boards

Question - La Jolla Surf boards is making a decision on whether to add long boards as a new product line to complement its short boards. A recent analysis determined that the average long board can be sold for $300.00 with unit variable costs of $225. Fixed costs are currently $51,000 per month but would be increased to $69000 if long boards are added. How much is their incremental profit or (loss) if long boards are added and its sales volume is expected to be 250?

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Accounting Basics: How much is their incremental profit or loss if long boards

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