Determine the effect each of the following situations would have on monthly profits. Each situation should be evaluated independently of all others. a. Product A is discontinued. b. Product A is discontinued, and the subsequent loss of customers causes sales of Product B to decline by 100 units. c. The selling price of A is increased to $11.00 with a sales decrease of 150 units. d. The price of Product Bis increased to $16.00 with a resulting sales decrease of200 units. However, some of these customers shift to Product A; sales of Product A increase by 140 units. e. Product A is discontinued, and the plant in which A was produced is used to produce D, a new product. Product D has a unit contribution margin of $0.60. Monthly sales of Product Dare predicted to be 600 units. f. The selling price of Product C is increased to $9.0, and the selling price of Product B is decreased to $14.00. Sales of C decline by 200 units, while sales of B increase by 300 units.

P4-28. Multiple Changes in Profit Plans: Multiple Products Information on Guadalupe Ltd.'s three products follows: . B Unit sales per month Selling price per unit Variable costs per unit Unit contribution margin. 900 $10.00 (10.40) 5 0.40) 1,400 $15.00 (12.00) $ 3.00 900 $8.00 (4.00) $4.00 Bequired