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Spencer Inc. manufactures a product that costs $95 per unit plus $37,000 in fixed costs each month. Spencer currently sells 1,000 of these units per
Spencer Inc. manufactures a product that costs $95 per unit plus $37,000 in fixed costs each month. Spencer currently sells 1,000 of these units per month for $175 each. If Spencer leased a machine for $4,000 a month, it could add features to the product that would allow it to sell for $215 each. It would cost an additional $32 per unit to add these features. How much would Spencer's profit be affected if it leased the machine and added features to its product?
a)Increase $4,000
b)Decrease $4,000
c)Increase $37,000
d) Decrease $37,000
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