Please answer the following questions 3A, 3B, 3C, and 3D.

Mason Corporation began operations at the beginning of the current year. One of the company's products, a refrigeration element, sells for $185 per unit. Information related to the current year's activities follows Variable costs per unit: Direct material Direct labor Manufacturing overhead 20 37 48 Annual fixed costs: Manufacturing overhead Selling and administrative $600,000 860,000 Production and sales activity: Production (units) Sales (units) 24,000 20,000 Mason carries its finished goods inventory at the average unit cost of production and is subject to a 30 percent income tax rate. There was no work in process at year-end 3. If next year's production decreases to 23,000 units and general cost behavior patterns do not change, what is the likely effect on a. The direct-labor cost of $37 per unit? No change Increase Decrease