Bean Town Company currently produces and sells 12,000 units of its product each month at $15 each.Another firm has offered to buy an additional 1,000 units at $10 per unit.Bean Town's total cost per unit is as follows: Fixed overhead costs per unit are based on production of 12,000 units per month.Bean Town currently has the capacity to produce 15,000 units per month.By how much would profit change if Bean Town accepts this offer?

Question

Bean Town Company currently produces and sells 12,000 units of its product each month at $15 each.Another firm has offered to buy an additional 1,000 units at $10 per unit.Bean Town's total cost per unit is as follows:  Fixed overhead costs per unit are based on production of 12,000 units per month.Bean Town currently has the capacity to produce 15,000 units per month.By how much would profit change if Bean Town accepts this offer?

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The Answer of Bean Town Company currently produces and sells 12,000 units of its product each month at $15 each.Another firm has offered to buy an additional 1,000 units at $10 per unit.Bean Town's total cost per unit is as follows:  Fixed overhead costs per unit are based on production of 12,000 units per month.Bean Town currently has the capacity to produce 15,000 units per month.By how much would profit change if Bean Town accepts this offer?

Bean Town Company Currently Produces and Sells 12,000 Units of Its