Problem D $(9$ points$)-$ The officers of Bradshaw Company are reviewing the profitability of the company's four products and the potential effect of several proposals for varying the product mix. An excerpt from the income statement and other data reveals:

Each of the following proposals is to be considered independently of the other proposals. Consider only the product changes stated in each proposal; the activity of the other products remains stable. Ignore income taxes.

A $1.$If Product ROMANO is discountinued, the effect on income $($loss$)$ before taxes will be:

A$.$ $$900$ increase

B$.$ $$4,194$ increase

C$.$ $$12,600$ decrease

$4,194-2266-1026=900$

D$.$ $$1,368$ increase

E$.$ None of the above

C $2.$If the sales price of Product ROMANO is increased to $$8$ with a decrease in the number of units sold to $1,500,$ the effect on income $($loss$)$ before taxes will be:

A$.$ $$2,850$ decrease

B$.$ $$600$ decrease

C$.$ $$1,650$ increase

D$.$ $$2,199$ increase

E$.$ None of the above

Fined $cos5=6\mathrm{.}50(1000)=11,700=>13968-11700=2268$ Ficed OH exprses $=1\mathrm{.}00(1000)$