The accountants at French Perfumery have decided to increase the price of a scent LOl, L$03$ called Breezy by $10\%,$ from $$6\mathrm{.}00$ per bottle to $$6\mathrm{.}60.$ French's accountants expect the $10\%$ price increase to reduce unit sales by $20\%.$ Current sales are $200,000$ bottles, and total variable costs are $$800,000.$

A$.$ Estimate the pretax profit effect of the price change, assuming no effect on the variable cost rate, on total fixed costs, or on sales of other products. $($Hint: Calculate the contribution margin at the old and new prices and volumes.$)$

B$.$ How certain can the accountant be that volume will decline $20\%$ if the selling price increases to $$6\mathrm{.}60?$ What effect does this uncertainty have on the managers' decision to increase the selling price?