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Calculate the effect that increase will have on her profit

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Reference no: EM13523206

Theodora Patel makes stuffed teddy bears. Recent information for her business follows:

Selling price per bear-------------$25.00
Total fixed cost per month-------1,500.00
Variable cost per bear------------15.00

She sells 350 bears this month.

1. Suppose sales increase by 20 percent next month, calculate the effect that increase will have on her profit.

Reference no: EM13523206

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