Spencer Inc

Multiple Choice

Spencer Inc.manufactures a product that costs $36 per unit plus $32,000 in fixed costs each month.Spencer currently sells 1,000 of these units per month for $80 each.If Spencer leased a machine for $8,000 a month,it could add features to the product that would allow it to sell for $120 each.It would cost an additional $12 per unit to add these features.How much would Spencer's profit be affected if it leased the machine and added features to its product?

A) Increase $32,000
B) Decrease $32,000
C) Increase $20,000
D) Decrease $20,000