How much would spencers profit be affected

Reference no: EM131977397

Problem

Spencer Inc. manufactures a product that costs $63 per unit plus $29,000 in fixed costs each month. Spencer currently sells 1,000 of these units per month for $125 each. If Spencer leased a machine for $6,000 a month, it could add features to the product that would allow it to sell for $165 each. It would cost an additional $26 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?

Reference no: EM131977397

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