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It costs Camp, Inc. $49 per unit to manufacture 1,000 units per month of a product that it can sell for $72 each. Alternatively, Camp
It costs Camp, Inc. $49 per unit to manufacture 1,000 units per month of a product that it can sell for $72 each. Alternatively, Camp could process the units further into a more complex product, which would cost an additional $43 per unit. Camp could sell the more complex product for $113 each. How would processing the product further affect Camp's profit?
a) Profit would increase by $2,000.
b) Profit would increase by $41,000.
c) Profit would decrease by $2,000.
d) Profit would decrease by $41,000.
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