q27

Company XYZ is currently operating with a 60% contribution margin. The company is planning an upgrade in its production facilities, which is expected to increase sales by $15,000. However, this upgrade is expected to increase fixed costs of $2,500. What would be the expected change in profit? O a. Increase by $12,500 O b. Increase by $6,500 Oc Decrease by $2,500 Od Decrease by 56,000 O e Increase by $15,000