Company XYZ produces and sells scientific calculators. The company is currently producing and selling 10,000 units. At this level, the fixed expenses were $10,500. In order to expand sales, the company plans to reduce the selling price by $2, which is expected to improve unit sales by 40% and achieve fixed cost savings of $3,000. Given that the company does not pay commissions to its sales people, the variable expenses per unit are expected to remain the same. What would be the impact on profit? a. Decrease by $6,000 b. Increase by $1,000 c. Increase by $2,000 d. No change e Decrease by $5,000 The contribution margin ratio is 60%. If total fixed costs are $22,000, then what is the total cost (S) of producing and selling 60,500 units? The selling price is $4 per unit a. 96,800 b. 145,200 C. 123,200 d. None of the given answers e. 220,000