Zippy Company has a product which it currently sells in the market for $50 per unit.Zippy has developed a new feature which,if added to the existing product,will allow Zippy to receive a price of $65 per unit.The cost of adding this new feature is $26,000 and Zippy expects to sell 1,600 units over the next year.What is the cost or benefit of Zippy adding the feature to the product?
A)$2,000 benefit.
B)$3,000 cost.
C)$3,500 benefit.
D)$4,000 cost.
E)$2,000 loss.

Question

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The Answer of Zippy Company has a product which it currently sells in the market for $50 per unit.Zippy has developed a new feature which,if added to the existing product,will allow Zippy to receive a price of $65 per unit.The cost of adding this new feature is $26,000 and Zippy expects to sell 1,600 units over the next year.What is the cost or benefit of Zippy adding the feature to the product?
A)$2,000 benefit.
B)$3,000 cost.
C)$3,500 benefit.
D)$4,000 cost.
E)$2,000 loss.

Zippy Company Has a Product Which It Currently Sells in the Market