Calculate the level of incremental profit per unit

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Reference no: EM13186624

Flintstones, Inc., markets a small solid cylinder of a spark-producing alloy used to ignite the fuel in residential furnaces. Currently, the company's products are sold to other manufacturers who then incorporate it in their merchandise. The yearly volume of output is 5,000 units produced and sold. The selling price and cost per unit are:

Barney Rubble, marketing director for Flintstones, is considering whether or not the company should market its product directly to end users for $300 per unit. Although no added investment in productive facilities is required, there are additional cost for further packaging and marketing. Rubble estimates these costs as:

A) Calculate Rubble's Incremental Cost per unit and Incremental Revenue per unit.

B) Calculate the level of Incremental Profit per unit.

C) Should they market their product directly to end users?

Reference no: EM13186624

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