9.35 Change in product mix (L01). Bradshaw Industries makes two varieties-Standard and Deluxe-of its one product. The company provides you with the following data: Standard Deluxe 250,000 50,000 2 Number of units Labor hours per unit Price per unit Variable costs per unit Unit contribution margin $14 $18 $8 $6 You also know that Bradshaw incurs fixed costs of $1,400,000. Suppose Bradshaw is considering changing its product mix to sell equal amounts of its Standard and Deluxe products. Total sales would remain at 300,000 units. Required: a. Allocating common fixed costs based on the total number of units, calculate Brad- shaw's expected profit with the new product mix. b. Repeat part (a) except use the number of labor hours to allocate costs to the two products. c. Which of the two estimates, in part (a) or part (b), do you believe is a better estimate of profit with the new mix? Why