Question 3 1 pts Jose's Tacos manufactures frozen tacos at the following per unit profit given a yearly volume of 500,000 tacos: Sales Revenue: $0.75 Variable Product Cost: $0.30 Fixed Product Costs: $0.20 Jose's is considering creating an extra-spicy taco that can be manufactured by further processing the existing taco with some additional ingredients. The additional per-unit processing costs would be as follows: Direct Materials: $0.10 Direct Labor: $0.05 Variable Manufacturing Overhead: $0.01 These spicy tacos can be sold for $1.25 per unit. No additional costs besides the ones above would be incurred if the spicy taco were manufactured in place of the nommal taco. What would be the effect on profits if 25% of the 500,000 units of volume were converted to spicy production Profits would DECREASE by $136,250 Profits would INCREASE by $136.250 Profits would INCREASE by 542,500 production? units of volume were converted to spicy Profits would DECREASE by $136.250 Profits would INCREASE by $136,250 Profits would INCREASE by $42,500 Profits would DECREASE by $42.500 Profits would DECREASE by $43,750 Profits would INCREASE by $43.750