A: Refer to the base case for Snowboard Company presented in the first column of Figure 3.5 Sensitivity Analysis for Snowboard Company. Assume the unit sales price decreases by 10 percent. Calculate (a) the new projected profit, (b) the dollar change in profit from the base case, and (c) the percent change in profit from the base case.

B:Refer to the base case for Snowboard Company presented in the first column of Figure 3.5 Sensitivity Analysis for Snowboard Company. Assume the number of units sold increases by 10 percent. Calculate (a) the new projected profit, (b) the dollar change in profit from the base case, and (c) the percent change in profit from the base case.

Base Case Variable values Sales price per unit Variable cost per unit Monthly fixed costs Volume of sales $250 $150 $50,000 700 units CVP model results Sales Variable costs Contribution margin Fixed costs Operating profit Dollar change in profit from base case Percent change in profit from base case $175,000105,000$70,00050,000$20,000