28.

Currently, you sell 1,000 units of product Z per month at a price of $40 per unit. The variable costs are: direct materials $10/unit, direct labor $4/unit, and variable overhead $2/unit. Fixed costs are unknown. You are planning to increase the price to $50 per unit. You expect sales volume to decrease by 20% (from the original level of 1,000 units per month) after this price increase. How much will the profit change in the short term if you increase the price?

Group of answer choices

increase by $3,200

decrease by $800

no change

increase by $7,200

decrease by $2,800