Exhibit 5-5 Tyler Incorporated Sells 5,000 Units Per Month with the Following

Multiple Choice

Exhibit 5-5
Tyler Incorporated sells 5,000 units per month with the following costs:
Variable costs: $1.25 per unit
Fixed costs: $3,000 per month
-Refer to Exhibit 5-5.Tyler recently switched vendors and expects variable costs to rise by $1.00 per unit.However,with a new lease on the factory,Tyler expects fixed costs to drop by $300 per month.
In the month after the change in suppliers and the signing of the new lease,Tyler anticipates selling 5,500 units per month.What will be the estimated total costs each month?

A) $12,375
B) $15,075
C) $2,700
D) $11,250
E) None of the answer choices is correct.