Refer to Exhibit 6-2. What would be the operating profit if the unit variable cost decreases 20 percent?

		$75,000
		$275,000
		$100,000
		$120,000
		None of the answer choices is correct.

Exhibit 6-2 Victor Company makes a single product. The company has monthly fixed costs totaling $200,000 and variable costs of S20 per unit. Each unit of product is sold for $35. Brevard expects to sell 25,000 units each month