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2 Required information 5.00 points Assume that the company plans to sell 7,000 units per month. Consider requirements (b), (c). and (d) independently of each

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2 Required information 5.00 points Assume that the company plans to sell 7,000 units per month. Consider requirements (b), (c). and (d) independently of each other Required a. What will be the operating profit? b. What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 40 percent? Sales price decreases by 20 percent Operating pront Sales price increases by 40 percent: Operating profit by by c. What is the impact on operating profit if variable costs per unit decrease by 20 percent? Increase by 40 percent? Variable costs per unit decrease by 20 percent Operating profit Variable costs per unit increase by 40 percent Operating profit by by d. Suppose that fixed costs for the year are 20 percent lower than projected, and variable costs per unit are 20 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much? proft 2 Required information 5.00 points Assume that the company plans to sell 7,000 units per month. Consider requirements (b), (c). and (d) independently of each other Required a. What will be the operating profit? b. What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 40 percent? Sales price decreases by 20 percent Operating pront Sales price increases by 40 percent: Operating profit by by c. What is the impact on operating profit if variable costs per unit decrease by 20 percent? Increase by 40 percent? Variable costs per unit decrease by 20 percent Operating profit Variable costs per unit increase by 40 percent Operating profit by by d. Suppose that fixed costs for the year are 20 percent lower than projected, and variable costs per unit are 20 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much? proft

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