Managers of Prestissimo Corporation Are Thinking About Eliminating One of Their

Multiple Choice

Managers of Prestissimo Corporation are thinking about eliminating one of their products,EasyGlo.EasyGlo sells for $8 per unit.Unit-related costs are $5,batch-related costs are $300 per batch,and 3 batches of EasyGlo have been required each month.Prestissimo spends $3,000 each month to advertise EasyGlo.Rent and insurance on the factory allocated to EasyGlo total $4,000.If Prestissimo is currently producing and selling 1,500 units of EasyGlo each month,what is the relevant profit for the product-elimination decision?

A) $4,500
B) $3,600
C) $ 600
D) ($3,400)