18. Refer to Exhibit 6-2. What would be the operating profit if the unit variable cost decreases 20 percent?

$75,000

$275,000

$100,000

$120,000

None of the answer choices is correct.

Exhibit 6-2

Victor Company makes a single product. The company has monthly fixed costs totaling $200,000 and variable costs of $20 per unit. Each unit of product is sold for $35. Brevard expects to sell 25,000 units each month.