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It costs Glenwood, Inc. $86 per unit to manufacture 1,000 units per month of a product that it can sell for $127 each. Alternatively, Glenwood
It costs Glenwood, Inc. $86 per unit to manufacture 1,000 units per month of a product that it can sell for $127 each. Alternatively, Glenwood could process the units further into a more complex product, which would cost an additional $36 per unit. Glenwood could sell the more complex product for $167 each. How would processing the product further affect Glenwood's profit?
Profit would increase by $4,000.
Profit would increase by $40,000.
Profit would decrease by $4,000.
Profit would decrease by $40,000.
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