an .-.. pro cesanse -waer'.- .- orgro'i--'--. -. e. The following are estimates relating to its 22 budget: Selling Price ..................... $100.3 Variable cost per Tank ............ .45 [m Fixed annual cost ----------------- -31 50mg Net! Prot (After tax} ............... 53mm\" Income tax rate- ................... 15% The mid-year review of the income statement revealed that sales were not at the expected level. For the six months of the year to June 2020. 350 units were sold at the estimated selling price with variable cost as planned. However, the net prot projection for ll Would not he achieved unless management decisions are made. The following mutually,r exclusive alternatives Were presented to management: a} The selling price should be reduced by $ l. This reduction in selling price will allow l Units to be sold for the balance of the year. The budgeted xed cost and variable cost per unit will remain unchanged. b} The variable cost per unit will be reduced by $25 by sourcing less expensive direct material. Also, the selling price will be reduced b_v $150 and the expected sales for the balance of the year is ll units. c} The xed cost would be reduced byl and the selling price by 5%. 1Variable cost will remain unchanged and 111)!) units are expected to be sold for the balance of the year