Question: Company XYZ is currently operating with a 40% contribution margin. The company is planning an upgrade in its production facilities, which is expected to increase

 Company XYZ is currently operating with a 40% contribution margin. The

Company XYZ is currently operating with a 40% contribution margin. The company is planning an upgrade in its production facilities, which is expected to increase sales by $10,000. However, this upgrade is expected to increase fixed costs of $2,500. What would be the expected change in profit? a. Increase by $12.500 O b. Increase by $1,500 Decrease by $4.000 Decrease by $2.500 e. Increase by $10.000

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