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166 points Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics: Sales price Variable costs

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166 points Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics: Sales price Variable costs Fixed costs 23 per unit 9 per unit 23,000 per month Assume that the projected number of units sold for the month is 7,000. Consider requirements (b). (C), and (c) independently of each other. Required: a. What will the operating profit be? Operating profit b. What is the impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent? (Do not round Intermediate calc Sales price decreases by 10 percent: Sales price increases by 20 percent Operating profit Operating profit

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