Beach Surf Boards Is Making a Decision on Whether to Add

question 41

Multiple Choice

Beach Surf Boards is making a decision on whether to add long boards as a new product line to complement its short boards.A recent analysis determined that the average long board can be sold for $300.00 with unit variable costs of $225.Fixed costs are currently $51,000 per month but would be increased to $69,000 if long boards are added.How much is incremental profit or (loss) if long boards are added and its sales volume is expected to be 250?

• A)$750
• B)$18,750
• C)($32,250)
• D)($50,250)

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