Page of 12 7 Biedy leis an upcompany that Inc. is a start-up company that produces m o tsbooks for elementary school children in the first year of operation, they sold 20,000 notebooks but incurred a loss of $20,000. They are trying to see if they should make some changes in their operation 1 Lower the selling price from 520 517 2 Keep the variable cost per unit at SIO per unit 3 Increase the advertising expense by $14,000 Bingley expects that the changes above would increase their sales volume (units) by 6 . What would be the impact of these changes on their profit A Bingley's loss will be reduced by $20,000 B Bingley's loss will be reduced by S10,000 C Bingley will reduce their loss by $28.000 D. Bingley's loss will be increased by $8,000. E. None of the above 8 de Bourgh Ine. manufactures and sells two models of car plugs: Alpha and Beta. The results for the last year for the two products appear below. Alpha Selling price per unit $4.00 Variable cost per unit Number of units sold monthly 3001 200 Fixed cost per month 5660 The company has developed another product, Gamma, which is of much higher quality. They plan to price it at $10 each The variable cost would be $5 per unit. Because of the limited production facility, the company is considering dropping Beta so that Gamma can be produced. The fixed cost will remain the same. However, the company is worried that they may not be able to sell as many units of Gamma as Beta because of the higher price. The company is also worried that Gamma might reduce the sales of Alpaha. The marketing manager estimates that the company can sell 120 units of Gamma. How many units of Alpha would they have to be able to sell to have the same profit as when they are selling Alpha and Beta? 52.50 units 140.0 units 240.0 units D. 448.2 units E. None of the above