Anheuser$-$Busch InBev NV$/$SA brews and distributes Shock Top beer. Suppose each unit $($i$.$e$.,$ a six$-$pack$)$ is sold to retailers for $$4\mathrm{.}80$ each and that manufacturing and other

costs are as follows.

The variable distribution costs are for transportation to retailers. Also assume the current monthly production and sales volume is $45,000$ units and monthly capacity is $60,000$

units.

Required

Determine the effect of the following separate situations on monthly profits.

Note: Do not use a negative sign with any of your answers.

a$.$ A $$1\mathrm{.}50$ increase in the unit selling price should result in an $5,400$ unit decrease in monthly sales.

Monthly profits would

by $

b$.$ A $$1\mathrm{.}80$ decrease in the unit selling price should result in a $18,000$ unit increase in monthly sales. However, because of capacity constraints, the last $3,000$ units would be

produced during overtime, when the direct labor costs increase by $50\%.$

Monthly profits would

by $

per unit to drop to $$3\mathrm{.}00?$ Assume that all fixed costs are unavoidable except for $$3,000$ in factory overhead. This amount will not continue in the short run if the segment is

discontinued, thus it is considered a cost savings if the segment is discontinued.

In the short run on a monthly basis, the company would incur a

of $

if the segment was discontinued.