Use the following information to answer questions 6-10. Answer each question independently unless instructed otherwise King Company manufactures two products called Red and Gold that sell for $155 and $115, respectively The company has the capacity to annually produce 80,000 units of each product. Its unit cost for each product at this level of activity are given below: Direct Material Direct labor Variable MOH Traceable FMOH Variable Selling expenses Common fixed expenses Red Gold $25$15 $18524 $22 $13 $20 $15 $19 $10 20 127 $97 23 Total Costs per unit Traceable FMOH are direct costs of each product line. Common fixed expenses have been allocated to the product based on sales dollars. The direct labor rate of $12 per hour is expected to remain unchanged throughout the year 6. Assume King expects to produce and sell 75,000 Golds during the current year. One of Kings sales representatives has found an additional customer willing to buy 8,000 additional Gold for a price of $100 per unit. If King accepts this customer's offer, how much will its profits increase or decrease? a. $145,000 b. 24,000 c. $304,000 d. $384,000 7. If King discontinues the Red Assume King normally produces and sells 70,000 Reds per year. product line, how much will profits increase or decrease? a. ($3,570,000) b. ($4,700,000) .($1,530,000) d. ($3,370,000)