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It Costs Glenwood,Inc

Question 70

Multiple Choice

It costs Glenwood,Inc.$70 per unit to manufacture 1,000 units per month of a product that it can sell for $100 each.Alternatively,Glenwood could process the units further into a more complex product,which would cost an additional $40 per unit.Glenwood could sell the more complex product for $145 each.How would processing the product further affect Glenwood's profit?


A) Profit would increase by $5,000.
B) Profit would increase by $45,000.
C) Profit would decrease by $5,000.
D) Profit would decrease by $45,000.

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