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31 March, 11:27

ACB Company sells Product X for $20 per unit, but if the product is enhanced, it can be sold for $26 per unit. The enhancement process will cost $80,000 for the 10,000 units that are currently sold. If sales of Product X remain the same, identify the following relevant costs to process further: Difference in selling price

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  1. 31 March, 12:26
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    Difference in selling price = $60,000

    Explanation:

    Given:

    Sales price per unit = $20

    New sales price per unit = $26

    Total unit sold = 10,000 units

    The difference in selling price = ?

    Computation of difference in selling price:

    Difference in selling price = Total unit sold (New sales price per unit - Sales price per unit)

    Difference in selling price = 10,000 ($26 - $20)

    Difference in selling price = 10,000 ($6)

    Difference in selling price = $60,000
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