Consider two different cost structures for the same firm. The first has higher variable costs per unit (V=56) but lower fixed cost (F=2232). If the firm invests in a labor saving machine the cost structure will tip towards fixed costs with variable cost per unit V=22 and fixed costs F=3483. The selling price is the same for both scenarios (P=100) and the current level of production is 80. Calculate the profit under each scenario and how that changes as unit sales increase to 100; also, as they decrease to 60. What is the percent change in profits from 80 units to 100 units under the scenario with higher variable costs?

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