Question 900434
In 2013, the company sold 696k units at $4.20 for a gross revenue of $2,923,200.
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.<Br>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.<br>
This is why larger companies can sell things less expensively than the same product produced by a smaller one.