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budgeted profit? Eagle Sales has developed the following budgeted income statement. The company is experimenting with new engineering techniques and believes it can reduce variable

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Eagle Sales has developed the following budgeted income statement. The company is experimenting with new engineering techniques and believes it can reduce variable cost to $4 per unit and significantly improve the product. The innovations would increase fixed cost to $10,000. The company expects to be able to maintain current sales (2,500 units). Assuming Eagle decides to pursue this strategy, by what amount would the budgeted profit change? Sales Revenue (2.500 units x $10 sales price) $25,000 Total Variable Expenses (2,500 x $6 per unit) ...(15,000) Contribution Margin 10,000 Fixed Expenses (6,000 Net Income $4.000 O decrease by $1,000 increase by $4,000 decrease by $2,000 O decrease by $4,000 increase by $1,000

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