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Cardboard Ltd manufactures and sells 20,000 cardboard boxes per month. Fixed costs per month are 23,000 and the total variable costs for manufacturing 20,000 boxes
Cardboard Ltd manufactures and sells 20,000 cardboard boxes per month. Fixed costs per month are 23,000 and the total variable costs for manufacturing 20,000 boxes are 24,000. Each box is sold for 3. The volume of sales can be increased by 10%, if the company spends 2,000 per month on advertising, thus increasing monthly fixed costs by 2,000. How will the profit per month be affected? Select one: O A. Profit will be reduced by 1,600 per month. OB. Profit can be increased by 3,600 per month. OC. Profit will be reduced by 2,000 per month. OD. Profit can be increased by 1,600 per month. E. Profit can be increased to 66,000 per month
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