N6

Blue Light Industries (BLI) makes a visor with a flip-down blue light screen. Price elasticity of demand for the hat at its current price is -2.7. The visor's variable cost is set to go down, andBLIis responding by reducing the hat's selling price by4.2%. For the coming changes in price and variable cost, BLI calculates percent profit breakeven at+13.5%, Will BLl's total profits on the hat GO UP OR GO DOWN after the changes? EXPLAIN HOW YOU KNOW.