Answer:
Difference= $1,000 increase
Explanation:
Giving the following information:
Selling price per unit: $30
Variable expenses per unit: $21
New selling price= 30 - 2= $28
New units sales= 13,000
First, we need to calculate the current contribution margin:
Total contribution margin= units sold*unitary contribution margin
Total contribution margin= 10,000*(30 - 21)
Total contribution margin= $90,000
Now, the new contribution margin:
Total contribution margin= 13,000*(28 - 21)
Total contribution margin= $91,000
