Narchie sells a single product for $50. Variable costs are 60% of the selling price, and the company has fixed costs that amount to $400,000. Current sales total 16,000 units. Each unit that Narchie sells will:
A. increase profit by some other amount.
B. increase profit by $30.
C. increase profit by $50.
D. decrease profit by $5.
E. increase profit by $20.
Answer: E
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