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* Question Completion Status: The Dubs Division of Fast Company (the parent company) produces wheels for off-road sport vehicles. Dubs has two products, Pl and

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* Question Completion Status: The Dubs Division of Fast Company (the parent company) produces wheels for off-road sport vehicles. Dubs has two products, Pl and P2. Dub's estimated operating data for the upcoming year is given next : Product 1 (P1) Product 2 (P2) Sales Price $310 each $400 each Var Mfg $110 each $125 each Var G&A $100 each $135 each Fixed Mfg $ 75,000 $100, 000 Fixed G&A $125, 000 $150, 000 Units Budgeted 2, 500 3, 000 Unless otherwise stated the fixed costs given above are allocated costs and unavoidable. As a result of increased foreign competition Dubs' managers are concerned that it would have to cut the unit price of Pl by 20% to maintain its current sales volume. Rather than cut the price of Pl, management is considering stopping production of Pl and only producing 3,000 units of P2. Fixed costs traceable to the production of Pl are estimated to be $30, 000 of manufacturing costs and $15, 000 of General and Administrative costs (G&A) . Complete the following worksheet but only report line (3) . Round your solution to the nearest $1.00. Your answer could be a negative number such as: -2000, for example. Total Dub's projected profit with a 208 decrease in the unit price of Product 1 (1) Total Dub's projected profit if Product 1 is dropped (2) Change in projected profit, i.e., line (1) minus line (2) . Only report this number. (3)

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