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Maple IncManufactures a Product That Costs $45 Per Unit Plus $50,000

Question 99

Multiple Choice

Maple Inc.manufactures a product that costs $45 per unit plus $50,000 in fixed costs each month.Maple currently sells 5,000 of these units per month for $60 each.If Maple leased a machine for $30,000 a month,it could add features to the product that would allow it to sell for $75 each.It would cost an additional $10 per unit to add these features.How much would Maple's profit be affected if it leased the machine and added features to its product?


A) Increase $5,000
B) Decrease $5,000
C) Increase $295,000
D) Decrease $295,000

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