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It costs Elmwood, Inc. $76 per unit to manufacture 1,600 units per month of a product that it can sell for $82 each. Alternatively, Elmwood
It costs Elmwood, Inc. $76 per unit to manufacture 1,600 units per month of a product that it can sell for $82 each. Alternatively, Elmwood could sell the units at an earlier stage of processing, which would save $33 per unit. Elmwood could sell the simpler product for $56 each. How would selling the simpler product affect Elmwood's profit?
A. Profit would increase by $11,200
B. Profit would increase by $41,600
C. Profit would decrease by $11,200
D. Profit would decrease by $41,600
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