Answer:
Profit = $8,550
Explanation:
The computation of incremental profit (or loss) is shown below:-
Variable cost per unit = Direct material + Direct labor + Variable manufacturing overhead
= $5 + $2 + $3.50
= $10.50
Incremental profit per unit = $15 - $10.50
= $4.5
Incremental profit = Incremental profit per unit × US umbrella
= $4.5 × 1,900
= $8,550