4. (Ch 25) Plum Company's income statement for the last is as follows: In an attempt to improve the company's profit performance, management is considering a number of alternative actions. Required: Determine the effect of each of the following on monthly profit. Each situation is to be evaluated independently of all the others. a. Purchasing automated assembly equipment: This action should reduce direct labor costs by 50 percent. It also will increase variable overhead costs by 10 percent and fixed factory overhead by \\( \\$ 1,250 \\). b. Reducing the unit selling price by \\( \\$ 1 \\) per unit: This should increase the monthly sales by 2,500 units. Fixed factory overhead will increase by \\( \\$ 750 \\). c. Increase fixed selling and administrative expenses by \\( \\$ 500 \\) for advertising costs. The number of units sold will increase to 4,000 units