Hanover Binding Plans to Produce 40,000 Books Next Year at a Total

Multiple Choice

Hanover Binding plans to produce 40,000 books next year at a total cost of $1,640,000 with a selling price per book of $66.00.The fixed costs total $280,000.Management is considering lowering the price to $60.00 per book, and feels that this action will cause sales to climb to 50,000 books.What will be the incremental costs incurred if 50,000 books are sold?

A) $340,000
B) $20,000
C) $1,700,000
D) $1,300,000