choose one option

The management of Company "A" feels that if the price of Product X is decreased from $40 per unit to $36 per unit, unit sales will increase from the current level of 13,000 per year to 20,000 units per year. The variable cost of Product X will decrease from $24 per unit to $20 per unit due to additional discounts offered by suppliers. Unfortunately though the fixed costs will increase from the current $100,000 to $170,000, if the sales volume increases. Management has asked you to analyze this information, (keeping in mind the CVP relationships) and determine the following: a How much additional variable cost will be created? b. How much additional profit will be created? O a. $312,000 and b. $150,000 O a. $400,000 and b. $108,000 a. $70,000 and $88,000 a. $88,000 and b. $42,000