Derby Phones is considering the introduction of a new model of headphones with the following price and cost characteristics. 

Sales price$17per unit 

Variable costs 5per unit 

Fixed costs 29,000per month 

Assume that the projected number of units sold for the month is 7,500. 

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 cost changes have on operating profit for the year? Will profit go up? Down? By how much?