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It Costs Hickory,Inc

Question 48

Multiple Choice

It costs Hickory,Inc.$220 per unit to manufacture 1,000 units per month of a product that it can sell for $290 each.Alternatively,Hickory could sell the units at an earlier stage of processing,which would save $80 per unit.Hickory could sell the simpler product for $200 each.How would selling the simpler product affect Hickory's profit?


A) Profit would increase by $10,000.
B) Profit would increase by $50,000.
C) Profit would decrease by $10,000.
D) Profit would decrease by $50,000.

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