Bradshaw Manufacturing Company is reviewing the profitability of the company's four products and the potential of several proposals for improving the profitability of the product mix. An income statement and other data follow: the Product Product Product Product Y Z W x Revenues $62,600 $10,000 $18,000 $12,600 $22,000 Cost of Goods Sold $44,274 $4,750 $7,056 $13,968 $18,500 Gross Margin $18,326 $5,250 $10,944 $-1,368 $3,500 Operating Costs $12,012 $1,990 $2,976 $2,826 $4,220 Operating Income $6,314 $3,260 $7,968 $-4,194 $-720 Units Sold 1,000 1,200 1,800 2,000 Selling Price $10.00 $15.00 $7.00 $11.00 Variable Cost of Goods Sold per Unit $2.50 $3.00 $6.50 $6.00 Variable Operating Costs per Unit $1.17 $1.25 $1.00 $1.20 Us the above information to consider each of the following questions. Each scenario is totally independent of the other two scenarios. 1. What is the effect on operating income if Y is dropped? Is it an increase or decrease? 2. What is the total effect on operating income if Y is dropped and a resulting loss of customers causes a decrease of 200 units in the production and sales of X? Is it an increase or decrease? 3. Assume that the part of the plant in which W is manufactured can easily be adapted to the production of Z, but changes in quantities produced would necessitate changes in selling prices. What is the total effect on operating income if production of Wis reduced to 500 units (to be sold at $12.00 each) and production of Z is increased to 2,500 units (sold at $10.50 each)? Is it a increase or decrease