q30

Company XYZ produces and sells scientific calculators. The company is currently producing and selling 10,000 units. At this level, the fixed expenses were $10,500. In order to expand sales, the company plans to reduce the selling price by $2 which is expected to improve unit sales by 40% and achieve fixed cost savings of $2,000. Given that the company does not pay commissions to its sales people, the variable expenses per unit are expected to remain the same. What would be the impact on profit? O a Increase by $1,000 O b. Decrease by $6,000 Oc Increase by $2,000 Od. No change O e Decrease by $4.000