document.write( "Question 900434: Waterways markets a simple water control and timer that it mass-produces. During 2013, the company sold 696,000 units at an average selling price of per solution $4.20 per unit. The variable expenses were $1,900,080, and the fixed expenses were $683,256. \r
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\n" ); document.write( "\n" ); document.write( "If sales increase by 51,000 units and the cost behaviors do not change, how much will income increase on this product? \n" ); document.write( "
Algebra.Com's Answer #546000 by JulietG(1812)\"\" \"About 
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In 2013, the company sold 696k units at $4.20 for a gross revenue of $2,923,200.
\n" ); document.write( "Their fixed expenses (those that do not change based on number produced) were 683,256. Their variable expenses (costs per unit on top of the fixed expenses) were 1,900,080. 1,900,080/696000 = $2.73 per unit.
If they increase production by 51,000 units, their cost will increase by 51000*2.73, or $139,230. However, their gross revenue will increase by 51000*4.20, or $214,200, for an increased profit of $74,970.

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