It costs Michelle, Inc. $35 per unit to manufacture 1,000 units per month of a product that it can sell for $50
each. Alternatively, Michelle could process the units further into a more complex product, which would cost an additional $30 per unit. Michelle could sell the more complex product for $75 each. How would processing the product further affect Michelle’s profit?
a. Profit would increase by $5,000. b. Profit would increase by $25,000 c. Profit would decrease by $5,000 d. Profit would decrease by $25,000
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