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3. Assume that Orange County expects to carn $3,000 of protax profit under its original assumptions (selling price $50, variable cost $30, and fixed cost
3. Assume that Orange County expects to carn $3,000 of protax profit under its original assumptions (selling price $50, variable cost $30, and fixed cost of $4,000) by selling 350 units. The firm can decrease its fixed costs to $2,000 if it is willing to increase variable costs to $35 per unit. Should the company change its cost structure? Current Proposed Revenues - Variable costs Contribution margin -Fixed costs Income
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