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It Costs Camp,Inc

Question 134

Multiple Choice

It costs Camp,Inc.$35 per unit to manufacture 1,000 units per month of a product that it can sell for $50 each.Alternatively,Camp could process the units further into a more complex product,which would cost an additional $30 per unit.Camp could sell the more complex product for $75 each.How would processing the product further affect Camp's profit?


A) Profit would increase by $5,000.
B) Profit would increase by $25,000.
C) Profit would decrease by $5,000.
D) Profit would decrease by $25,000.

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