If Qualls Quality Airline cuts its domestic fares by 30%, profit will increase by 30%. a profit can be earned either by increasing the number of passengers or by decreasing variable costs a profit can only be earned by decreasing the number of flights. its fixed costs will decrease. Sitwell Corporation manufactures titanium and aluminum tennis racquets. Sitwell's total overhead costs consist of assembly costs and inspection costs. The following information is available: Sitwell is considering switching from one overhead rate based on labor hours to activitybased costing. Using activity-based costing, how much inspections cost is assigned to titanium racquets? $37,500 $35,625 $22,500 $52,500