A manufacturing company has the following monthly budget.

Sales

480,000

Direct Material

140,000

Direct Labour

110,000

Variable overheads

50,000

Fixed overheads

130,000

Total Cost

430,000

Profit

50,000

Sales can be increased by 15% per month if an extra work shift is added, but the sales price would have to be reduced by 3% on all units sold in order to sell the extra volume. Direct labour is a variable cost, but work in the extra shift would have to be paid an extra 50% per hour on top of the normal hourly rate. Increased purchases of materials means that a bulk purchase discount of 2% will be available on all materials purchased. Additional fixed overheads would be $2,000 per month.

If the additional work shift is added, what will be the monthly profit?

A $51,400

B $52,150

C $53,410

D $60,060