Applications of Differential Analysis Moscot manufactures high-end sunglasses that it sells in retail shops and online for $310, on average. Assume the following represent manufacturing and other costs. Variable Costs per Unit Direct materials Direct labor Factory overhead Distribution Total Fixed Costs per Month $80 Factory overhead $585,000 50 Selling and administrative 35 Total 487,500 $1,072,500 10 $175 The variable distribution costs are for transportation to retail partners. Assume the current monthly production and sales volume is 19,500 units. Monthly capacity is 26,000 units. Required Determine the effect of each of the following independent situations on monthly profits. Note: Do not use negative signs with your answers. a. A $50 increase in the unit selling price should result in a 2,600 unit decrease in monthly sales. $ 0