Danny's manufacturing company sells a baby high chair for 50. DMC has a contribution margin ratio of 40% and annual fixed expenses of 250,000. In 2012, DMC sold 10,000 high chairs. DMC was disappointed in its results and is contemplating the following action:

Lower the selling price of its product by 10%

Reduce the fixed salaries of salesmen by 40,000 and give salesmen a commission of $2.00 per high chair sold

Change the manufacturing process to reduce variable costs by $8.00 per high chair produced while increasing fixed expenses by 150,000

If DMC implements this plan, they will increase sales volume by 20%

What is the impact to DMC's profit if it implements the plan described above?

A. Increase profits by 52000

B. Reduce profits by 58000

C. Increase profits by 40000

D. Reduce profits by 110000

E. increase profits by 12000