4. The company is considering adding lighting and electrical outlets to the entertainment unit. Doing so will increase variable costs by $50 per unit and fixed costs by $25,000. Managers believe they can sell the enhanced model for $1,000, but would only be able to sell 800 units of the higher-priced model. What is the incremental profit (loss) of the enhanced model? Analysis of the Enhanced Design Contribution margin of existing design (1,000 units) x ($900 - $400) = $(500,000) Contribution margin on enhanced design 800 units X ($1,000 - $450) - $440,000 Increased fixed costs $(25,000) Incremental profit (loss) $(85,000)