How much would the selling price need to be increased in order to double profit if costs, production and sales volume remain unchanged?

Toshi Ltd currently sets its selling price at $10, which achieves a 25% mark-up on variable cost.

Annual production and sales volume is 100,000 units and annual fixed costs are $80,000.

How much would the selling price need to be increased in order to double profit if costs, production and sales volume remain unchanged?
A . 12%
B . 17%
C . 20%
D . 25%

View Answer

Answer: A