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 have to charge for the product with additional features to make it worthwhile to lease the machine?
A) $48
B) $76
C) $88
D) $100
Correct Answer:
Verified
Correct Answer:
Verified
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