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Arbroath Glass Products Limited manufactures three ranges of high quality paperweights -- Basic, Standard and Deluxe. Its accountant has prepared a draft budget for Year

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Arbroath Glass Products Limited manufactures three ranges of high quality paperweights -- Basic, Standard and Deluxe. Its accountant has prepared a draft budget for Year 7: Basic 000 Standard 000 Deluxe 000 Total 000 Revenue Material Labour Variable overhead 46 16 20 5 37 12 15 12 43 13 5 5 126 41 40 22 Fixed overhead 9 50 5 44 6 29 14 20 123 3 Profit/(Loss) The directors are concerned about the viability of the company and are currently considering the cessation of both Basic and Standard ranges, since both are apparently losing money. If the directors close down only the manufacture of Standard paperweights, what is the effect on total profit? A. Profit decreases by 5,000 B. Profit increases by 12,000 OC. Profit increases by 2,000 OD. Profit increases by 7,000

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