Determine the effect each of the following situations would have on monthly profits, each situation should be evaluated independently.

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 $5.50 with a sales decrease of 150 units.

D. The price of Product B is increated to $8 with a resulting sales decrease of 200 units, however some of the customers shift to Product A, sales of product A increase by 140 units.

E. Product A is discontinuted and the plant in which A was produced is used to produce D, a new product. Product D has a unit contribution margin of $.30. Monthly sales are predicted to be 600 units.

The selling price of Product C is increased to $4.50, and the selling price of Product B is decreased to $7.00. Sales of C decline by 200 units, while sales of B increase by 300 units.

Llu.S the products L01, 2, 3) Informaio follows: Unit sales per month Selling price per unit.. .. Variable costs per unit . . .. Unit contribution margin. . 00 1,500 80 5.00 $%7.50 $4.00 ..(5.20) (6.00) (2.00) $(0.20) $1.50 $2.00 noquired