Lark Art Company sells unfinished wooden decorations at a price of $15.00. The current profit margin is $5.00 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 $3.00, additional materials costing an average of $4.00 per unit and fixed costs would increase by $1,500. If the
company estimates that it can sell 600 units for $25 each month, would they make additional profits or losses?
A) $300 profit
B) $300 loss
C) $800 profit
D) $800 loss
A
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What will be an ideal response?
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