Question 16 (1 point) Citizen sells a watch for $35 at a variable cost of $15 per unit and fixed cost of $1 million per annum. Recent recession has seen jump in material cost by $7. What is the change in profit due to recession if Citizen produces and sells 100 000 watches in a year? OA) $1 800 000 increase B) $300 000 decrease OC) $800 000 increase OD) $1 000 000 decrease O E) $700 000 decrease