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

Derby Phones is considering the introduction of a new model of headphones with the tollowing price and cost characteristics: Sales price Variable costs Fixed costs 22 per unit 9 per unit 28,000 per month Assume that the projected number of units sold for the month is 6,000. Consider requirements (b), (c), and (d) independenty of each other. Required: a. What will the operatigpofit be? b. What is the impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent? (Do not round intermediate calculations.) ont Operabing Salcs price docrcascs by 10 percent: Opcratng protit Sales price increases by 20 percent Operating profit by by c. What is the impact on aperating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent? (Do not round intermediate calculations.) ablcosts per unit decrease by 10percent Oting prot Variable costs per unit increase by 20 percent Operating proft by by d. Suppose that fixed costs far the year are 10 percent lower than projected, and variable costs per unit are 10 percent higher than prajected. What impact will these cost changes have on operating profit for the year? Will profit go up? Dowm? By how much? (Do not round intermediate calculations.)