It Costs Elmwood,Inc

question 132

Multiple Choice

It costs Elmwood,Inc.$78 per unit to manufacture 1,000 units per month of a product that it can sell for $90 each.Alternatively,Elmwood could sell the units at an earlier stage of processing,which would save $36 per unit.Elmwood could sell the simpler product for $60 each.How would selling the simpler product affect Elmwood's profit?

• A)Profit would increase by $6,000.
• B)Profit would increase by $30,000.
• C)Profit would decrease by $6,000.
• D)Profit would decrease by $30,000.

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Definitions:

Joint Probability Distribution

The probability distribution that encompasses the probabilities of various outcomes for two or more random variables simultaneously.

Mobile Phone Store

A retail outlet specializing in the sale of mobile phones and related accessories, including various brands and models, often providing services like repair and technical support.

Joint Probability Distribution

Describes the probability distribution for two or more random variables simultaneously and their dependency relationships.

Mobile Phone Store

A retail store specializing in selling mobile phones and related accessories.