Maple IncManufactures a Product That Costs $45 Per Unit Plus $50,000

question 22

Multiple Choice

Maple Inc.manufactures a product that costs $45 per unit plus $50,000 in fixed costs each month.Maple currently sells 5,000 of these units per month for $60 each.If Maple leased a machine for $30,000 a month,it could add features to the product that would allow it to sell for $75 each.It would cost an additional $10 per unit to add these features.How much would Maple's profit be affected if it leased the machine and added features to its product?

• A)Increase $5,000
• B)Decrease $5,000
• C)Increase $295,000
• D)Decrease $295,000

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Definitions:

Limit-Sell Order

An order given to a broker to sell a specified quantity of a security at or above a specified price, ensuring the seller does not receive less than a predetermined price.

Program Trade

A set of stock transactions that involves the buying or selling of a large number of stocks simultaneously, often executed by computers to achieve specific investment objectives.

Coordinated Purchase

The act of buying securities or assets in a synchronized manner, often used to achieve a common financial goal or exert market influence.

Portfolio of Stocks

A collection of stocks held by an individual or an institution.