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Would they make additional profits or losses

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Reference no: EM132969109

Question - Sandy Art Company sells unfinished wooden decorations at a price of P15.00. The current profit margin is P5.00 per decoration. The company is considering taking individual orders and customizing them for sale. To finish the decoration the company would have to pay additional labor of P3.00, additional materials costing an average of P4.00 per unit and fixed costs would increase by P1,500. If the company estimates that it can sell 600 units for P25 each month, would they make additional profits or losses?

a. P800 profit

b. P800 loss

c. P300 profit

d. P300 loss

Reference no: EM132969109

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