Armada Inc. has recently reported an EBIT of $1,850,000. During the year, Armada Inc. has sold 17,000 bags for $150 each. The variable costs per unit were equal to $25. The company thinks of changing its production process by increasing the variable costs per unit by $10 and increasing the output by 10,500 bags. What is the firms incremental profit? *

5 points

a. $1,752,500

b. $1,037,500

c. $1,587,500

d. $1,902,500

e. None of the above