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Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics: Sales price Variable costs Fixed costs

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Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics: Sales price Variable costs Fixed costs 19 per unit 9 per unit 27,000 per month S Assume that the projected number of units sold for the month is 7,500. Consider requirements (b), (c), and (d) independently of each other Required: a. What will the operating profit be? Answer is complete and correct. S 48,000 Operating profit d. Suppose that fixed costs for the year are 10 percent lower than projected, and variable costs per unit are 10 percent higher than projected. What impact will these changes have on operating profit for the year? Will profit go up? Down? By how much? (Do not round intermediate calculations.) Answer is complete but not entirely correct. Operating profit $ 4,050 by decreases MacRoole Air Charleston Inc. manufactures 40,000 components per year The manufecturing cost of the components totel $190,000 and are comprised of direct materials, $90,000, direct labor $50,000; veriable manufacturing overhead, $20,000; and fixed manufacturing overhead, $30,000. If Charleston purchases the component from an outside supplier for $4.25 per unit, how will the company's operating profit be impacted? O $30.000 decrease O $30,000 increase O $10.000 decrease $10.000 increase O None of these

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