QUESTION 57 EXTRA CREDIT Randi's Jelly, Ltd collected the following data about their monthly contribution margins from sales of jelly: Moonberry Yogiberry Merryberry Selling Price Variable Cost Contribution Margin Units Sold 12,000 8,000 10,000 Randi believes that she could increase sales of Yogiberry by 5,000 units per month if more attention were devoted to it and less to Moonberry. Moonberry sales would decrease by 2,000 per month. What change in income would occur if this action were taken? A none of the listed choices. B. Increase of $10,000 OC. Decrease of $10,000 D. Increase of $20,000 E. Income would remain the same QUESTION 56 EXTRA CREDIT Jetson's Dynamics makes scooters. The company has three models of scooters, the Astro, the Elroy and the Rosie. The controller has prepared the following estimates for next year. (All projections are on a per scooter basis). Astro Elroy Rosie $150 Selling Price Variable Costs 5 200 100 60 180 Sales Mix Estimated Sales are $ 60,000,000 Estimated fixed costs are $ 18,000,000. $ 18,000,000 Go back to the information above. (Remember the information before question 53 is relevant also). What will be the effect on profits if Jetson spends an additional $20,000 on advertising and the sales of Elroy increases 5,000 scooters, but the sales of Rosie decreases by 1,000 units? A. Profits will decrease by $220,000 B. Profits will decrease by $360,000 OC. Profits will increase by $ 480,000 D. none of the listed choices O E. Profits will increase by $360,000