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Company x Y Z is considering expanding its production capacity to meet increasing demand. The current production tevel is 1 , 0 0 0 units

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Company xYZ is considering expanding its production capacity to meet increasing demand. The current production tevel is 1,000 units per month, and the incremental cost per unit for the expansion follows: is as follows:
Direet material cost: $20 per unit
Direct labor cost: $10 per unit
Variable overhead cost: $5 per unit
Fixed overhead cost: $2,000 per month
If the company decides to increase production to 1,500 units per month, what will be the total incremental cost for the additional 500 units?
A. $20,000
B. $17,500
C. $19,500
D. $10,000
E. $18,500
F. None of the above
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