Fact Pattern: The officers of Bradshaw Company are reviewing the profitability of the company's four products and the potential effects of several proposals for varying the product mix. An excerpt from the income statement and other data follow: Totals Product P Product Q Product R Products $62,600 Revenues $10,000 $18,000 $12,600 $22,000 Cost of goods sold 44,274 4,750 7,056 13,968 18,500 Gross profit $18,326 $ 5,250 $10,944 $ (1,368) $ 3,500 Operating expenses 12,012 1,990 2,976 2,826 4,220 Income before income taxes $ 6,314 $ 3,260 $ 7,968 $ (4,194) $ (720) Units sold 1,000 1,200 1,800 2,000 Sales price per unit $10.00 $15.00 $7.00 $11.00 Variable cost of goods sold per unit 2.50 3.00 6.50 6.00 Variable operating expenses per unit 1.17 1.25 1.00 1.20 Each of the following proposals is to be considered independently of the other proposals. Consider only the product changes stated in each proposal; the activity of other products remains stable. Ignore income taxes. Part of the plant in which Pis produced can easily be adapted to the production of S, but changes in quantities may make changes in sales prices advisable. If production of Pis reduced to 500 units (to be sold at $12 each) and production of S is increased to 2,500 units to be sold at $10.50 each), the total effect on income will be A. $6,330 decrease. O B. $1,515 decrease. OC. $4.165 increase D $2,540 decrease