South Park Software, Inc. produces innovative interior decorating software that it sells to design studios, home furnishing stores, and so on. The yearly volume of output is 15,000 units. Selling price and costs per unit are as follows:

Management is evaluating the possibility of using the Internet to sell its software directly to consumers at a price of $300 per unit. Although no added capital investment is required, additional shipping and handling costs are estimated as follows:

Calculate the incremental profit that South Park would earn by customizing its instruments and marketing them directly to endusers.

  • CreatedFebruary 13, 2015
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