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Grime-X is studying the profitability of a change in operation and has gathered the following information: Picture Current operation Anticipated operation Fixed cost $38,000 $48,000

Grime-X is studying the profitability of a change in operation and has gathered the following information: Picture

Current operation Anticipated operation

Fixed cost $38,000 $48,000

Selling price $16 $22

Variable cost $10 $12

Sales (units) 9000 6000

Should Grime-X make the change?

(A) No, because the company will be worse off by $4,000.

(B) No, because sales will drop by 3,000 units.

(C) No, because the company will be worse off by $22,000.

(D) It is impossible to judge because additional information is needed.

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