Given the following data answer the questions:

ANDERSON COMPANY Contribution Income Statement Sales For Month of October Less variable costs Direct materials Direct labor Variable factory overhead Selling and administrative Contribution margin Less fixed costs (15,600 units x $75) (15,600 units x $10) $156,000 (15,600 units x $10) 156,000 (15,600 units x $4) 62,400 (15,600 units x $2) 31,200 (15,600 units x $49) Factory overhead Selling and administrative Net income (loss) $1,170,000 (405,600) 764,400 468,000 312,000 (780,000) $(15,600) Required Determine the effect of each of the following independent situations on monthly profit. Note: Do not use negative signs with your answers. a. Purchasing automated assembly equipment, which should reduce direct labor costs by $4 per unit and increase variable overhead costs by $1 per unit and fixed factory overhead by $15,600 per month. Increase of $ 16,200 b. Reducing the selling price by $5 per unit. This should increase the monthly sales by 3,900 units. At this higher volume, additional equipment and salaried personnel would be required. This will increase fixed factory overhead by $5,200 per month and fixed selling and administrative costs by $2,340 per month. Increase of $0 x c. Buying rather than manufacturing a component of Anderson's final product. This will increase direct materials costs by $5 per unit. However, direct labor will decline $3 per unit, variable factory overhead will decline $1 per unit, and fixed factory overhead will decline $32,500 per month. Increase of $ 500 x d. Increasing the unit selling price by $5 per unit. This action should result in a 2,600 unit decrease in monthly sales. Decrease of $0 e. Combining alternatives (a) and (d). Decrease of $0