Beach Surf Boards Is Making a Decision on Whether to Add

Short Answer

Beach Surf Boards is making a decision on whether to add long boards as a new product line to complement its short boards. A recent analysis determined that the average long board can be sold for $300.00 with unit variable costs of $225. Fixed costs are currently $51,000 per month but would be increased to $69,000 if long boards are added. How much is incremental profit or (loss) if long boards are added and its sales volume is expected to be 250? a. $750
B) $18,750
C) ($32,250)
D) ($50,250)