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It Costs Elmwood,Inc

Question 132

Multiple Choice

It costs Elmwood,Inc.$78 per unit to manufacture 1,000 units per month of a product that it can sell for $90 each.Alternatively,Elmwood could sell the units at an earlier stage of processing,which would save $36 per unit.Elmwood could sell the simpler product for $60 each.How would selling the simpler product affect Elmwood's profit?


A) Profit would increase by $6,000.
B) Profit would increase by $30,000.
C) Profit would decrease by $6,000.
D) Profit would decrease by $30,000.

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