Design Layout References Mailings Review View Help Great Outdoors Limited (GOL) GOL manufactures high-end ski goggles that it sells to boutique ski shop suppliers for $80. Manufacturing and other costs are as follows: Variable costs Fixed costs per month Direct materials $18 Selling and administrative $45,000 Direct labor 17 Factory overhead 30,000 Factory overhead 7 Distribution 8 The variable distribution costs are for transportation to suppliers. The current monthly production and sales volume is 6,000 units while they have productive capacity to produce 7,000 units. Consider each of the following situations independently and determine the impact of each situation on monthly profits. Be sure to show supporting computations. You may ignore taxes. a. A $5.00 increase in the selling price would result in a 1,500 unit decrease in monthly sales. b. A 10% decrease in the unit selling price should result in a 2,500 unit increase in monthly sales. However, because of capacity constraints, the last 1,500 units would be produced during overtime with a direct labor cost increasing by 60% for the overtime units. c. A Norwegian supplier has proposed to place a special, one-time order for 1,000 units at a reduced price of $70 per unit. The supplier would pay all transportation costs. There would be additional fixed selling and administrative costs of $2,000. FUS